Snow Jobs Program
by digby
Matthews had a Village roundtable this afternoon that was quite illuminating. If you wondered what the big upcoming jobs program is going to consist of, listen to this
Matthews: Let me go to Jim Vandehei. You know I’m pretty pro-Obama in terms of responsibility many ways. I certainly like the spirit of this administration the whole direction it’s taken in terms of this country’s history.
But I have to wonder about the jobs program. Right now, let’s talk jobs. The two toughest opponents he’ll probably face if he faces either one of them is Mitt Romney and Rick Perry of Texas, and al they talk about is jobs. The President can’t play that game. He can’t get on a bus and drive around like he’s Pawlenty saying ‘I’m going to create jobs.” He’s got to do it Jim. how can he say “I’m pivoting towards jobs” and get on a bus.
What’s going on? Has he got a program?
Vandehei: That’s his problem is he certainly doesn’t have one that people are buying into that business is buying into. Government’s not going to stimulate this economy. The economy doesn’t need a nudge, it needs a jolt. Soi untiil that 2.5 trillion dollars that you were talking about the businesses are sitting on, until that gets pumpoed into the economy we’re going to have this stagnation and that’s bad for him.
So he has to figure out a way to articulate a plan, a strategy for creating jobs.
Maybe that’s tax reform that lowers the corporate tax rate, getting these free trade deals through. He’s got to convince business that there’s some stability and some predictability in this market going forward. If he doesn’t do it, we’re going to continue to have this cycle. Business hates instability and what they saw in that default crisis was that congress might to something nuts and force the country into default or it might not do the right thing and get the balance sheets in order, so they’re nervous…
Matthews argued on this pretty forcefully suggesting that the President needs to at least propose a major government jobs program to repair and replace infrastructure and put a couple of million people to work — and dare the Republicans to deny it. John Heilman, the other guest, explained that Obama doesn’t do hand to hand combat.
Vandehei was obviously confused by this whole line of questioning and added that he thought the president’s only option was to come out with a big proposal but then said that everybody (well, except liberals) thinks it’s “bad politics and bad policy” to do any more spending, especially when Independents “recoil at the idea of more government.”
Matthews came back with this:
Well then he’s done Jim, then he’s done. If he has to be faux Republican, if he acts like his main goal is deficit cutting and debt cutting, then he’s just a watered down conservative. Doesn’t he have to be an activist Democrat to have a shot at being a leader in this country? Otherwise he’s following the Tea Party, not fighting it.
Vandehei: It would require a pretty radical switch from where he’s at right now. They made the decision that they’re going to the center, that they’re going to try to win back Independents and they’re going to try to navigate this countrywide move where they want less spending. You saw where his heart is at at the beginning of those negotiations on the debt ceiling. He wanted to do something big, get at entitlements and get to tax reform because lowering that corporate tax rate is something his administration believes that they could support that would get those businesses to start hiring. Once they start hiring the atmosphere changes politics changes and he can start to readjust. Until that happens he is a prisoner of this economy.He the prisoner of a congress that has no appetite for more spending.
Matthews pointed out that business is currently making tons of money by firing people and squeezing workers and asked the obvious question:
Why does anyone think that cutting corporate taxes and giving business more of a break is going to get them to do what they know doesn’t make money…?
Heilman: Chris there’s a logic to tax reform that says if you could cut taxes across the board after getting rid of loopholes that it would drive consumer demand and if you had consumer demand go up it would drive a greater demand for the products of corporations and they would therefore would be able to produce more and then hire more. I think that’s the logic. I’m not endorsing it but I think that’s the logic of those who believe that that kind of tax reform would lead to more and better jobs in America.
Matthews: Is that right?
Vandehai: If you’re right Chris, then we’re in a lot of trouble if you think these companies don’t want to do any hiring, because government’s not going to create the jobs. If we don’t get business to do I don’t know who else creates jobs.There’s only two places where they come from and one is not … it’s in gridlock and they’re not going to do it. There’s not going to be stimulus.
So there has to be some sort of compromise, some sort of concentrated effort by both parties to get business doing what needs to do which is help grow this economy.
Matthews: I think we disagree. I think the American people have to be confronted with a choice. Do you want the government to sit and do nothing or do you want it to go out and create jobs. I think they want it to create jobs the worst this number gets.
Matthews sounded pretty sane there, at least recognizing the basic tenets of liberalism. Vandehei, on the other hand, is a very dangerous, corporatist tool.
I don’t question his reporting on the administration — I’ve heard the same bilge about lowering corporate tax rates as a stimulus elsewhere — but he’s clearly a true believer as well. That jaded, Villager point of view is what’s driving the train and frankly, at this point, it scares the hell out of me. If he’s right about what the administration is counting on as a jobshttp://www.blogger.com/img/blank.gif program, not only are there not going to be any jobs created, but average Americans are about to be required to “sacrifice” yet again so that corporations can make even more profits. This “tax-reform” is going to be a Madoff level scam.
Update: Ahhh. I see that Harris and Vandehei had a big piece in Politico this morning spelling all this out. Just. Wow.
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