Robert Reich: Governors have very little influence on job growth

[salvorhardin]

Perry and Romney can duke it out over who created the most jobs, but governors have as much influence over job growth in their states as roosters do over sunrises.

States don’t have their own monetary policies so they can’t lower interest rates to spur job growth. They can’t spur demand through fiscal policies because state budgets are small, and 49 out of 50 are barred by their constitutions from running deficits.

States can cut corporate taxes and regulations, and dole out corporate welfare, in efforts to improve the states’ “business climate.” But studies show these strategies have little or no effect on where companies locate. Location decisions are driven by much larger factors — where customers are, transportation links, and energy costs.

If governors try hard enough, though, they can create lots of lousy jobs. They can drive out unions, attract low-wage immigrants, and turn a blind eye to businesses that fail to protect worker health and safety.

Link: http://robertreich.org/post/10183304775

[HockeyMom]

1. Sounds like Rick Scott's plan

Wonder how many jobs, and businesses, he has attracted as of now?

[salvorhardin]

3. It's all over the country now

All the "Very Serious People" (as Krugman likes to refer to them) have bought into the myths that workers are pricing themselves out of the global market, and that we need to create "better business climates" in the states. Poppycock! It all comes down to lower wages and corporate welfare.

[antiquie]

2. as roosters do over sunrises

"...but governors have as much influence over job growth in their states as roosters do over sunrises"

Jerry Brown?

_________________________________________


"...because state budgets are small"

California?

http://blogs.sacbee.com/capitolalertlatest/2011/09/jerry-brown-calls-for-war-on-u.html

[jwirr]

4. States can also make unemployment much worse - just look at all

the government workers fired in the last year. Once again Reich is right.

[HockeyMom]

5. These government workers don't just disappear

They add to the unemployment roles of these states. Oh, yeah they will automatically get private for profit jobs (teachers, firefighters?), or better yet, maybe they will get off lazy asses and become JOB CREATORS!!!!! Doing WHAT????

[jwirr]

6. I agree. The firing of these people is the most insane move of this

whole mess.