How to boost America’s economy now Reply


By Tom Quiner

Time to get America's economy back on track!

This Labor Day, 2010, our economy is hurting.  Everything the President and his party has tried has failed.

Unemployment is way up.  Economic growth is stagnant. Net job creation doesn’t exist.  The stock market is going nowhere fast.

The underlying premise of the President is that only government can get the economy back on track.  I would suggest that, if anything, the federal government has made things worse in many (but not all) respects.

Here are some concrete suggestions on how to get America back on track:

1. Renew the Bush tax cuts.  The last thing we need now is a tax increase on America’s most productive Americans. In addition, we need to reduce the uncertainty that is paralyzing economic decision-making.  Renew the tax cuts and get out of the way!

2. Sign the Korea-Free Trade Agreement.  Senator Grassley has been a huge advocate of this agreement.  The Bush administration got the agreement negotiated, the Obama administration essentially has killed it.  And yet the upside to the agreement is enormous.

Did you know Korea is the sixth largest export market for pork?  Japan is number one.  But according to the Iowa Pork Producer’s website, pork exports to Korea could surpass Japan’s once the treaty is fully implemented.  Even more, they project the agreement would give our pork producers an increase of $10 per hog marketed.

3. Allow individuals and families to shop for health insurance products across state lines.  This is one of the few products where interstate commerce is prohibited. Increased competition would generate more choice and lower prices for consumers.

4. Along that line, provide a refundable tax credit – $2,300 for individuals and $5,700 for families – to purchase coverage in any State, and keep it with them if they move or change jobs.  This is a key component of the Republican’s “Roadmap for America’s future” as authored by Wisconsin Congressman, Paul Ryan.

5. Rescind the requirement for Project Labor Agreements (PLAs) on Federal construction projects.  As former Administrator for the General Services Administration, Lurita Doan, said:

[PLAs] “punish non-union, small construction businesses and often prevents them from bidding or performing federal construction work in their communities.”

6. Suspend the Minimum Wage (MW) until the national unemployment rate falls below 7 percent.  As discussed in previous posts, the minimum wage punishes workers with low skills.  It takes a devastating toll on teens, especially black teen aged males. The MW forces employers to pay some workers more than they’re worth, which suppresses employment.  Lack of job opportunity drives some of these young men into gangs.

The minimum wage affects the nation’s economy in other ways.  For example, it has encouraged illegal immigration.  Employers who had jobs that weren’t worth the minimum wage filled those positions with illegals who were willing to work for what the job was really worth.  By suspending the MW, we discourage illegal immigration.

Grassley knows how to create jobs. Obama doesn’t. 1


When President Obama was sworn in as President, America’s unemployment rate was 8.5 percent.  Fifteen months later, it had climbed to 10.2 percent.

When President Obama was sworn in as President, Iowa’s unemployment rate was 6.2 percent.  Fifteen months later, it had climbed to 7.4 percent.

The President’s economic initiatives aren’t producing jobs.

I wrote the piece that follows for the Des Moines Register last December.  It appeared on December 13th, 2009.  The piece was based on a telephone interview I had with Senator Charles Grassley.  Senator Grassley presented a proven path to job creation:  an expansion of free trade.  Specifically, the Senator discussed the merits of the pending Korean Free Trade Agreement.

The bill has been held up by Democratic Party politics.

Since then, unemployment for the U.S. has increased a half a percent  and the unemployment rate for Iowa has increased even more.

While Democrats dither, Iowans are losing their jobs.

The President believes increased taxes, increased government spending, and increases in government regulation are the path to job creation.  He said as much this week when he was in Iowa.

There are legitimate pros and cons to pending Wall Street reform, but they’re not the key to job growth.

Free trade is.  And it doesn’t increase our taxes.  It doesn’t increase government spending.  And it doesn’t increase government regulation.  Senator Grassley gets it.  He’s worked in the private sector.

The President is too beholden to unions and Democratic Party pressure groups to advance the Korean Free Trade Agreement.

He doesn’t get it.  Our job as voters is to promote the positive message of free trade to the rest of our congressional delegation.

Iowa needs jobs.  Read the piece that follow for details.  Then get on the phone and call your representatives in Congress to support the Korean Free Trade Agreement.

Be sure to rate this post.

How to create more jobs for America Reply


As seen in the Des Moines Register on December 13, 2009

America needs more jobs. 

Unemployment is killing us. I know of so many people who have lost their job and many of those still employed feel insecure.

The President held a “jobs summit” to look for solutions.

I don’t trust the President’s judgment when it comes to creating jobs.  He’s never run a business or even worked in the business sector. In fact, he is openly adversarial to the private sector.

What does he believe in?  Higher taxes on oil companies.  Higher taxes on capital gains.  Higher income taxes for high income earners.  More government regulations on practically everything.  Budget-busting stimulus packages.

His ideas aren’t creating jobs.  They deter job creation because they increase the cost of doing business.  They increase the risk associated with running a business.

The President and his party could do something very practical right now to create jobs:  approve the Korea Free Trade Agreement.

South Korea is a huge market for manufacturing, services, and especially agriculture products.  The upside to the agreement is substantial.

The man who helped negotiate the treaty in 2007 was in Des Moines over Thanksgiving.  David Spooner was Assistant Secretary for Import Administration under President Bush.  He told me: “The Korean agreement would reduce our trade deficit.  As we try to pull out of our recession, it should be a no-brainer to pass a trade bill that will reduce our trade deficit.  The average job linked to exports earns 17% more than the non export-related jobs.  The trade agreement would promote quality jobs.”

Did you know Korea is the sixth largest export market for pork?  Japan is number one.  But according to the Iowa Pork Producer’s website, pork exports to Korea could surpass Japan’s once the treaty is fully implemented.  Even more, they project the agreement would give our pork producers an increase of $10 per hog marketed.

This is good news for Iowa.

Iowa Congressman, Leonard Boswell, supports the treaty:  “The U.S. – South Korea Free Trade Agreement is a significant opportunity for Iowa as an agricultural commodity state and the home of agriculture manufacturing companies.”

I talked to Senator Grassley about the bill.  He called the agreement “vital”, even more important that the one we have with Canada, who is our biggest trading partner.  He pointed out that the U.S. converted trade deficits into surpluses after implementation of trade agreements with Chile, Morocco, Bahrain, Oman, Central America, and the Dominican Republic.

After implementation of agreements with Singapore, Australia, and Peru, our trade surpluses with those countries got even bigger.  And Korea is a much bigger trading partner than any of these.  The upside is off the charts.  Grassley quotes Department of Commerce figures that tell us every billion dollar increase in U.S. exports create 20,000 jobs.

Free trade is good for America generally and Iowa specifically.

The treaty is negotiated.  The work is done.  So what’s the hold up?

Democratic Party politics.

Representative Boswell’s support notwithstanding, President Obama and his party are  dragging their feet.  They want to go back to the drawing board on this agreement to appease Big Labor who want more protectionism built into the agreement.

There’s no time to dither.  Senator Grassley points out that the European Union has just initialed their own trade agreement with Korea.  In a letter to President Obama, Senator Grassley says:  “If we fail to implement our pending trade agreements promptly, we will place our producers and their workers at a serious competitive disadvantage.  It would be both senseless and irresponsible for us to do so.”

Let’s set politics aside and support policies that really create jobs.  The Korea Trade Agreement is the perfect place to start.