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Tuesday Talk: What creates jobs?

March 12, 2013 By Joe Sheeran, Communications Director

Most business indicators show we’ve shaken off the Great Recession with a single, troubling exception: the unemployment rate. Even though Minnesota is doing better than the nation as a whole, too many people are still unemployed or underemployed. Conservatives say cut taxes but tax rates for so-called “job creators” are lower than job seekers. Progressives call for more money in consumers’ hands in the form of higher wages, creating demand for more products.

Which policies create jobs? Which path should Minnesota take? 

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  • William Pappas says:

    March 12, 2013 at 6:43 am

    Job creation happens when one business or government action creates the need or opening for more work or another company.  The Affordable Care Act will create millions of jobs in an easy win/win.  Spending the federal tax dollar on insuring all Americans and creating competitive exchanges will result in overall health care savings, and actually quite easy to do.  IN the course of that spending clinics will respond (our construction company just met with a potential franchise clinic system that wants to build clinics to serve this new population of health insurnace consumers)with expansion. Construction companies and developoers know that area is ripe for expansion.  The ACA also means fewer people and especially small business will be destroyed financially by one employee becoming very sick and needing costly care.  This is hugely significant for entrepeneurs who regard the purchasing and maintenance of affordable health insurance as the most significant barrier to business startups and their ability to make it over the first few years.  Personal bankruptcies due to health crisis will fall quickly meaning those people will continue to participate in the economy which trnaslates into more consumer spending and will in turn create jobs rather than be a collective drag on the economy.  Our company, next year, will participate in the state wide pool for small business, dramatically reducing the impact of a sudden health crisis by one of our employees or their family.  That gives us more stability in regard to our health insurance expenditures while the Act also allows us to shop for the best insurance available in the first competitive environment for health insurnace companies by the creation of Minnesot’s exchange.  This is just one piece of legislation that will have a job creation ripple effeect across the entire economy.  It is the best example I can think of that partners private enterprise and initiative with government policy heading in the right direction to make job creators of all of us.

  • Peter Rachleff says:

    March 12, 2013 at 9:03 am

    1) Major government jobs program—rebuild infrastructure, restore music and arts to the schools, put artists to work (yes, revive the 1930s WPA)
    2) Facilitate workers’ rights to organize so that they can struggle effectively for higher wages and a greater share of the productivity they have created
    3) More progressive taxation—back, at least, to the income tax rates of the 1950s and 1960s.  Add financial transaction tax on Wall Street
    4) Return to regulation—particularly of Wall Street
    5) Forgive debt—mortgages (scale down principal to new value), forgive student debt

  • Mike Downing says:

    March 12, 2013 at 9:54 am

    Another provocative question by MN2020.

    We all have had different experiences and observe things differently. Personally I have seen very little job creation in the private sector created by government except for non valued added jobs such as lawyers and regulatory affairs jobs dealing with the every changing regulations.

    Government has a very poor record of picking winners but a good record of picking losers such as Solyndra.

    My suggestion is simply for government to get out of the way of private sector job creators. The CEO of Subway says he could
    not have started Subway with today’s regulations and government interference.

  • tony says:

    March 12, 2013 at 12:17 pm

    Mike, government has created jobs when business couldnt. The WPA & CCC created many of our state parks & employed many people when there were no other jobs around. As far as green jobs, the failure rate on these under Obama is only about 4% including Solyndra & they failed because the Chinese sunsidize their industries & under-bid Solyndra. Other industries have about an 8% failure rate. If you want to included the military-industrial complex, those exist because of govt. As far as Subway, the regulations on the food industry have greatly relaxed as we have cut inspectors to examine them. Restaurants & chains are expanding everyday including Subway in spite of regs. As far as getting out of the way. We did that with the FDA and if you saw “60 Minutes” on Sunday you saw how lax enforcement on pharmacies thru de-regulation has caused the deaths of 48 people & permanent disability to many more & lets bring up what bank de-regulation did to the economy we are under now.

  • Robert Nepper says:

    March 12, 2013 at 1:36 pm

    3M showed us how to create/save thousands of jobs by spinning off Imation Corp rather than scrap declining product lines and laying off over 10,000 loyal workers! Too bad it hasn’t kept that process going.  Big companies also claim and then scrap far too many employee inventions that don’t fit their existing product lines. We must change the rules to salvage thousands of potential new products, new businesses, new jobs and new tax revenue that we lose that way.
    In my own case, I developed a new product in my home workshop which was totally unrelated to my day job. When my employer discovered it, he claimed it (even though he didn’t want it) just to stifle any outside entrepreneurialism arising from any of HIS employees.  We need new rules requiring employer to simply “Use or Return” all employee inventions. Such a proposed, no-cost law (SF 21)is stalled again in the current legislative session!

  • William Pappas says:

    March 12, 2013 at 6:46 pm

    Mike, are you still hung up on Solyndra?  Open your eyes and look around in Minnesota.  REad my comments below but also look at the private investment LRT created adjacent to the Hiawatha line (by my estimate over a billion dollars worth of private money spent on housing).  Currently the Central Corridor is stimulating an investment dream along University Avenue.  At the end of next year My company will have performed nearly 50 million dollars worth of construction along that corridor. A transformation is underway because of actions taken by our government to streamline transporation between St. Paul and Minneapolis.  If you choose to ignore it or discount it you and people that think like you are simply missing tremendous opportunity.  I suggest you retire your blinders, get on board and participate in the hot economy we have developing here in many parts of Minnesota.

  • Jeff K. says:

    March 13, 2013 at 12:25 pm

    Robert - great point/example of the hypocrisy of our system right now. Mike -My understanding of Solyndra is that they (and numerous other emerging companies)applied for and received grants under a federal program. Am I misunderstanding that? If I had applied for a student loan, and then failed out of college, would the President be to blame for “picking a bad one”? As far as the CEO of Subway .... he may or may not be able to start up in a similar fashion, but lets face it, if you can’t start a sandwich shop ... you’re probably not an entrepreneur.