The Obama Jobs Plan #1 — Manufacturing
When I saw this headline on the Fox Nation – CNN: Not Only Is Obama’s Plan Old, but It Doesn’t Add Up – I laughed at first, but then I decided I would look at the plan to see what nonsense the administration is putting out. (You can download a PDF copy of the plan here.)
On the first page, you get the overview of what his “plan” would do:
- Revive American Manufacturing
- Energy Made in America
- Growing Small Businesses
- Quality Education
- Cutting the Deficit by $4 trillion
- Putting YOU in Charge of Your Health Care — (I will wait for you to stop laughing.)
- Protecting Retirement Security
So, as you can see, Obama has a 7-point plan as opposed to Romney’s 5-point plan. (I guess that is Obama’s idea of providing “specifics.”)
Let’s dive in, shall we?
(Note: This article will focus on the manufacturing aspect of the Obama plan.)
Revive American Manufacturing
According to Obama, his plan will create 1 million manufacturing jobs by 2016. Since he is the current President, there would be no transition period from November to January if he were reelected which would make it an average of 250,000 jobs a year over the next four years.
(Sounds wonderful (note sarcasm) – but the Romney plan will create 3 million jobs during the same time frame.)
Then we have to get to the idea of how to implement and pay for all of these jobs. So, from the Obama plan –
Reforming the corporate tax code to bring down tax rates – cutting tax rates on domestic manufacturers by nearly a quarter – while closing tax preferences and loopholes to pay for it.
Let me translate – Lower your tax rate, but do not tell you which tax preferences and loopholes will be closed to pay for it. Question – Do you have any specifics, Mr. President? Can you identify one preference or loophole you will close to pay for this? I didn’t think so.
Ending tax deductions for companies shipping jobs overseas, and using the savings to create a new tax credit for companies that bring jobs home.
Again, let me translate. Obama is going to take money from Company “A” to pay for the tax credit for Company “B.” Also, if Company “A” employs Americans in this country, those Americans are at risk of losing their jobs to pay for this tax credit.
Two questions – How much money in savings will we generate from penalizing companies, like GE – which is run by Jeff Immelt who is on your jobs council, for sending jobs overseas? Secondly, why are companies choosing to do that in the first place? Do you even have a clue as to why they are moving their operations overseas which is the underlying fundamental issue here? Guess not…
Training 2 million workers with the skills for good jobs through new partnerships between community colleges and employers.
Yep – that is their plan!!! I think the Democrats need to go back and understand the concept of math. 2 million workers for 1 million jobs means there are 1 million people on the unemployment line. And they are actively promoting this plan. Why would any reasonable person vote for this kind of logic?
Some other points of noteworthy interest from this section of the Obama plan –
President Obama gave emergency loans to rescue General Motors and Chrysler, saving more than 1 million jobs up and down the auto supply chain and preventing the loss of over $96 billion in personal income.
Just an FYI, Mr. President - Chrysler is now the wholly-owned subsidiary of the Italian car company – Fiat. So, you didn’t save what was once an American company. For all intents and purposes, you sold it to the Italians. As for GM, Mr. President: You might want to scrap the “GM is alive, Bin Laden is dead slogan” because:
So, let’s recap the Obama plan for manufacturing –
- Cut taxes – Wait!! He did that already, didn’t he? I think he keeps saying he cut taxes 18 times on the non-rich people and now he is going to do it again?? How is this time going to be any different?
- Close tax loopholes – But, he does not identify a single one that would be closed; even though he tries to ding Mitt Romney for not identifying a “single one.” Nor does he tell you how much money would be generated in “savings” to pay for these new tax credits to “reward” businesses for staying here. So, you can’t even be sure that this tax credit is even paid for.
- Spend more money educating more people to do these types of jobs than the number of jobs Obama expects to create in his own plan.
- Even though I didn’t mention it earlier, it wouldn’t be an Obama plan without the creation of two more government oversight task force, bureaucracies, oversight committees – A Trade Enforcement Unit (to level the playing field with China) and An Oversight Committee to create a new network of manufacturing innovation institutes between businesses and research universities. (I don’t even think anyone from the campaign can even tell you what a manufacturing innovation institute is…much less does.)
So, CNN has it right – It is the same old thing…and it didn’t work the first time around either.