Yes, We Need a Jobs Program, But One
That Doesn’t Tinker Around the Edges

By Carl Davidson
Keep On Keepin’ On

Our regional daily newspaper, the Pittsburgh Post-Gazette, to its credit, came out with an editorial today, Aug. 22, 2011, urging President Obama to push for a substantial jobs program over Republican opposition.

“Action on jobs: Obama must push hard to get people back to work” is the headline, and a key point stresses “Mr. Obama now needs to offer proposals equal to the size of the problem. That means bold strokes, not half-measures. If his Republican antagonists in Congress are determined to stand in the way of getting Americans back to work, the president must say so publicly — and then go over their heads to enlist the nation in his effort.”

Terrific, a good framing of the question. Unfortunately, however, once you get into the substance of the piece, it turns into a muddle. The Post-Gazette offers up a hodgepodge of proposals that tinker around the edges of the problem-more tax cuts and credits for jobs created, more unemployment benefits, and oddly, more trade deals, even though these deals mostly result in net job losses.

Here’s the heart of the matter. In a down economy, jobs are created by increasing demand, by more customers with bigger orders coming to a firm’s doors. The problem is that consumer demand has taken a nose dive when the credit bubble burst. People don’t have money to spend. They’re cutting back on everything, and trying to unload their debt. This means business-to-business orders shrink as well. Companies may be cash-rich and have high profits, but with no increase in orders or customers at their door, they aren’t likely to hire people to do nothing just to get a tax credit.

This is where government has to become the key customer. It has to make huge productive purchases for local work and local materials to build productive infrastructure-county-owned green energy plants, new and improved schools, modernized locks and dams, Medicare for all, investment in young students and veterans like we did with the GI Bill, investment in research in new industries, and so on.

Most important, to work well, it can’t be nickel-and-dimed to death. It has to be on the scale of the expenditures for World War 2. That’s when the ‘multiplier effect’ can kick in, and related growth in manufacturing can take off in turn. And it has to be paid for by going to where the most appropriate money is, imposing a financial transaction tax on unproductive and destabilizing speculation by Wall Street.

The best the P-G does on this matter is to support Obama’s proposal for an ‘Infrastructure Bank,’ but urges him to find a way to bypass a GOP roadblock in Congress.

But even that is too passive. It says, in effect, here’s a small pot of money. If you want to repair some roads, come and get some.

What we really need is something like the New Deal’s Tennessee Valley Authority and Works Progress Administration, but on steroids, a TVA-WPA-CCC 2.0. We need to pass John Conyer’s HR 870 Full employment Bill. We need the Dept. of Energy and the Dept. of Labor to go to every county in the country with a fully funded proposal to build new green energy wind farms and solar power arrays as public energy utilities, hiring local workers at union scale, with no obstacles to a union election. And that’s just for starters.

Yes, we need a serious jobs program. But it’s time for everyone who utters that phrase to get serious themselves. Why? Because it’s going to take a massive upsurge in class struggle to get it by removing those standing in the way.

[Carl Davidson is a Steelworker Associate and a retired computer technician living in Beaver County.  His ‘Keep On Keepin’ On’ column appears in Beaver County Blue, website of the 4th CD Progressive Democrats of America.]

Photo: Wasted War Junk in Iraq

More Taxes for More Wars?
Scrambled Brains in High Places

By Carl Davidson
Keep On Keepin’ On

Members of Congress had best be careful. If it hasn’t already done so, the ‘deficit madness’ virus circulating in those hallowed halls will turn your brains into scrambled eggs.

That’s the conclusion to draw from the latest bright idea from Rep. Jim McGovern (D-Mass) reported in the Aug 16 Washington Post-a new tax surcharge on taxpayers across the board to pay for the ongoing wars in Iraq and Afghanistan.

 ”These wars ought to be paid for and not put on a credit card so that our kids will have to pay for this in the future,” McGovern said in a recent telephone interview. It’s morally wrong for members [of Congress] to call for support of our soldiers and then not ask the rest of us to pay for it .?.?. or have it left to the poor and middle-income and seniors to bear the sacrifice along with our soldiers and their families. That’s wrong.”

McGovern wants the ‘Super-Congress’ Deficit Commission to take it up.

Only the last phrase about putting the burden on the poor contains any sense, especially since the overall costs, not to mention lives lost on all sides, is approaching $3 trillion. The rest is just screwy.

But I have a better idea. First, end the wars immediately, and only allocate enough money to get all our troops and contractors back home lickety-split. Second, pass a bill to pick up the tab by doing away with the oil depletion allowances and all other tax breaks on the oil companies. If that’s not enough, put a tax on transfers of oil stocks and the profits of military contractors. And if they try to jack up the price of gasoline to cover their war expenses, nationalize them. After all, they’re the only ones really benefiting from these foreign policy disasters.

Once that’s out of the way, we can turn to the more strategic solution: a job creating financial transaction tax on all Wall Street gambling to fund the clean energy and green manufacturing revolution we need to move away from fossil fuels altogether. There are all sorts of places to begin, from ‘shovel-ready’ low-skilled jobs repairing the locks and dams on our rivers, to higher skilled jobs building and installing county-owned wind and solar generators as public power utilities.

In short, ‘Jobs, Not War!’ and ‘Windmills, Not Weapons’ are much better alternatives every which way than more taxes to pay for more wars. Back to the drawing board, Congressman McGovern.