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M&T News – Obama/Immelt Jobs Council report: More garbage

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Obama’s Jobs and Competitiveness Council was headed by Jeffrey Immelt, head of the outsourcing/tax avoiding company General Electric.  The council was to issue a plan to put Americans back to work.

So what is the cause of persistent unemployment?  It’s the workers fault for not being retrained.  So says the “Jobs Council”.  It’s not that we offshore our factories… that’s just an illusion.  It’s not that other countries cheat on currency, border taxes, subsidies, etc. to build their broad based economies and our political leadership does nothing while fighting on irrelevant issues.

Immelt continues to harm the U.S. not only through GE offshoring, but also by helping distract political leaders who are in a position to focus on the trade deficit to get the economy going.

Manufacturing and Technology News featured the story on its front page – “President’s Jobs Council Says Workers Are The Reason They’re Jobless.”

The problem is not so much the shortage of jobs, but a shortage of trained workers, engineers and skilled foreign immigrants who could fill the few jobs that might exist, Jobs Council members told President Obama on June 13.

The 17-18% real (U6) unemployment can be fixed by retraining all those people for a “new job”!  Those “new jobs” that don’t have people trained for them!  Millions of those “new jobs” just waiting to pay good wages and benefits – if only the workers could be retrained by taxpayers – because the U.S. based companies offering those “new jobs” have so much demand for their products that they can’t keep up and need to hire new employees – if only they were properly trained – for those “new jobs.”

Employment demand is derived demand.

The demand for all factors of production (inputs), including labour, is a derived demand ie the demand for factors of production depends on the demand for the products they produce.

This means that the demand for U.S. workers requires demand for the U.S. products produced by U.S. based companies.  The jobs lost in the Great Recession were not the result in a sudden employer realization that all those workers needed retraining and should be fired until the U.S. taxpayer retrains them.  The jobs were lost because the products made by those companies were not being bought.

But we buy a lot of imported goods, not made by U.S. workers, because our political leaders coddle state managed economies that cheat on trade.  If we balanced trade, demand for U.S. goods would be high and demand for U.S. workers would be high.

 

4 Responses to “M&T News – Obama/Immelt Jobs Council report: More garbage”

  1. This is an awesome article, thanks Michael.

  2. Dick Storm says:

    Good points and G-E has not been the same since Jack Welsh retired!
    Don’ t forget the “myth of Green Jobs”!
    The rush to outlaw fossil fuels by Imelt, Obama and followers, is a rush to further damage our economy.
    America needs to Dig (mine raw materials including coal, metal ores and rare earth minerals),
    Drill for American oil (no windmill will power a 747 or 787 any time soon), and Build American projects, cars, homes, Manufactured products for sale (or gifts thru US AID, of American made products, built by Americans!)

    In summary,
    DIG, DRILL, BUILD!
    Dick Storm

  3. Maggie says:

    Shouldn’t the “jobs council” be asking how many 99′ers are already trained engineers etc.?

  4. Milt Heft says:

    Immelt of General Electric is one of our country’s greatest outsourcers. Obama put him in charge of creating more American jobs. Immelt’s solution is to re-train American workers. To do what? To totally destroy our economy and bring in Obama Control?? Blame can be shared: Outsourcing started with Clinton (No more dirty jobs in the USA); expanded greatly by Bush; headed for disaster by Obama. We are in a war and we are losing it. The only upside is that no one is dying – not yet.

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