In portraying herself as a virtual Barack Obama third term, Clinton ties herself not only to a foreign policy that continues to inflame the Middle East, but also to his domestic economic record. A key element is job creation, the cornerstone of any real growth.
For example, during her acceptance speech at the Democratic National Convention, Hillary Clinton praised Obama’s efforts to steer the nation’s recovery.
“Now, I don’t think President Obama and Vice President Biden get the credit they deserve for saving us from the worst economic crisis of our lifetimes,” she told the crowd in Philadelphia. “Nearly 15 million new private-sector jobs… And an auto industry that just had its best year ever.”
Leaving aside some fuzzy math to get to that tally of 15 million new jobs, Clinton purposefully passes off quantity with what we’ll call quality.
A quality job is one that is sustainable, with full-time status and benefits, the kind of work that both rebuilds America’s soul while at the same time makes work more profitable than unemployment benefits and aid. Most importantly for the greater economy, a quality job is one that allows the worker to put money into society. Rising tide lifting all boats.
The latest job statistics show that is not what is happening.
While the Bureau of Labor Statistics announced the U.S. added some 177,000 jobs in August, all of them were in the low-paying service industry. Fast food, store clerks, that sort of thing. Basically Americans not making anything, but simply passing existing money around in some zero-sum game. A cashier earns a dollar which she turns over to the dry cleaner who later buys a Big Mac. At some point a corporation pulls that dollar out of the hands of its workers as “profit,” perhaps to offshore it to avoid taxes.
And if the job stats reporting only new service jobs were not dismal news enough, Bureau results show that in the same time period some 2,000 construction and 5,000 goods-producing jobs evaporated. In July, mining and logging companies dumped 7,000 positions. Those thousands of workers were thrown into the pool seeking employment.
No one is saying we should revive so-called dead industries, or that America revert fully to a 1950s style heavy iron economy. But economics is about people, and those people need jobs they can earn a living doing.
BONUS: Clinton’s solution? Hillary claims during her first 100 days in office she will launch “the biggest infrastructure and jobs program that we’ve had since World War II.” That mirrors the huge stimulus program that President Obama signed into law in 2009, during his own first 100 days in office.
Clinton’s plan would see $300 billion in spending on transportation projects spread over five years, $60 billion per year. She plans to raise the money via new taxes on the wealthy that Congress is highly unlikely to agree to.
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