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    WHO IS RESPONSIBLE FOR JOB CREATION?byJim Fitzgerald| 8,Add your Comment| Sep 5, 2010

    The New York Times headline reads:Slumping Economy Jeopardizes Democrats ElectionProspects. The author of the article went on to comment, Its no wonder that jobs who can

    create them, who is to blame for the losses are nearly all that candidates [in Ohio] discuss. Ofcourse this is the discussion taking place nationwide.

    Heres the interesting thing about this article. Itsuggests that, regardless of ones opinion of the government, there is a clear expectation that thegovernment is responsible for job creation. Government holds the key to prosperity and growth andthe failure to create jobs is a significant result of failed federal and state policies. The corollary is thatfailed government policies are, also, responsible for job losses. That is, businesses are pawns ofgovernment, marionettes manipulated by the government. Businesses cannot grow unlessgovernments adopt the correct combination of policies. In some quarters, that means eliminatingcorporate taxes. In others it means granting tax credits. That is, job creation is not possible unless

    business is given the freedom from any responsibility it may have to contribute to the very societythat makes their success possible. There seems to be no expectation that businesses, currently sittingon over one trillion dollars in cash, have any patriotic responsibility to actively participate in oureconomic revival.The expectation that government is responsible for job creation seems to fly in the face of mostpolitical pundits, especially conservative commentators. Whereas they tell us to vote againstDemocrats if we want job creation, they also tell us government is too intrusive and should bedownsized to decrease its influence in our lives. The Republican Party still believes that lessregulatory control of business is the key to growth and prosperity. They still have the assumption

    that businesses, and the free market, will regulate themselves and stay in balance while producinggrowth.

    Since the prevailing opinion is that the current lack of job generation is the result of failed Obamapolicies, then the tragic loss of 15 million jobs over the last four years lies at the feet of failed Bushadministration policies. Are we to throw out the Democrats because they do not create jobs and re-implement the policies that cost us 15 million jobs? Assuming, of course, that you believegovernment is in the business of creating and losing jobs.

    The Bush administration took a laissez faireattitude toward regulation enforcement, in keeping withconservative policy.Laissez fairedescribes an environment in which transactions between private

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    parties are free fromstateintervention, including restrictive regulations, taxes, tariffs and enforcedmonopolies. This hands off policy appears to have been the root of our economic collapse.For job creation, we need to focus on business, not the government. Obama has been struggling tokeep the economy afloat until businesses decide to step back into the game. They have the money tocreate jobs. More hiring means more people with money to spend and more growth. Businesses haveto step up to the plate. We should not have the expectation that government must create jobs,

    especially if we rail against stimulus spending, believe government is too intrusive, and thinkgovernment should be shrunk. If we resent governments role in the economy then we must focus onbusiness and hold companies accountable for their role. The greater the expectation of government,the larger and more intrusive government will be. Blame business or government, take your pick. If

    you want small government, you must pick business.

    ###

    JIM FITZGERALDA clinically trained psychologist, Jim had a private practice in Cobb County for almost 30 years. Forthe last ten years he has been a Professor of Psychology at Goddard College in Plainfield, VT, butlives in the North Georgia Mountains.

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    overnment priority: Creating decent jobs

    Update on progress and achievements for 2012/13

    Budget for jobs

    The drive to create jobs

    Government initiatives

    Government programmes supporting job creation

    Finding a job

    What does Government say about job creation?

    What do academics say about job creation? Documents

    Update on progress and achievements for 2012/13

    Employment growth

    Employment grew by 327 000 (or 2,5%) by the last quarter of 2012. Since the

    first quarter of 2011, employment has grown for seven consecutive quarters.

    Employment in the informal sector increased by 112 000, while formal sector

    jobs increased by 92 000 and jobs in the agricultural sector by 23 000 in thethird quarter of 2012.

    Job creation

    An allocation of R1,4 billion was made to the Community Work Programme for2012/13 and out of 171 500 work opportunities to be provided, 114 382 (67%)had been provided by the end of October. Of the total number of workopportunities provided, 71% were allocated to women, 52% to young people

    and 0,78% to people with disabilities.

    TheDepartment of Communicationsis implementing a digital migration policywhich will result in more than 23 500 jobs created in the manufacturing value

    chain including installers and warehousing, logistics and repairs.

    It has also established thee-Skills Instituteto address the current shortage ofand future need for ICT-related skills in South Africa and to ensure that SouthAfrica is an e-literate society by 2030, as articulated in the New Development

    Plan.

    5% of the reserves of the Unemployment Insurance Fund have been set aside

    for social responsibility investment, with a focus on job creation. TheCompensation Fund has made a similar allocation for investment in thehealthcare industry.

    Empowering the youth

    TheNational Youth Development Agency (NYDA)recorded the following youthempowerment statistics, arising from its interventions:

    http://www.info.gov.za/issues/job_creation/#updatehttp://www.info.gov.za/issues/job_creation/#updatehttp://www.info.gov.za/issues/job_creation/#budgethttp://www.info.gov.za/issues/job_creation/#budgethttp://www.info.gov.za/issues/job_creation/#backgroundhttp://www.info.gov.za/issues/job_creation/#backgroundhttp://www.info.gov.za/issues/job_creation/#initiativeshttp://www.info.gov.za/issues/job_creation/#initiativeshttp://www.info.gov.za/issues/job_creation/#programmeshttp://www.info.gov.za/issues/job_creation/#programmeshttp://www.info.gov.za/issues/job_creation/#findhttp://www.info.gov.za/issues/job_creation/#findhttp://www.info.gov.za/issues/job_creation/#speecheshttp://www.info.gov.za/issues/job_creation/#speecheshttp://www.info.gov.za/issues/job_creation/#expertshttp://www.info.gov.za/issues/job_creation/#expertshttp://www.info.gov.za/issues/job_creation/#docshttp://www.info.gov.za/issues/job_creation/#docshttp://www.doc.gov.za/http://www.doc.gov.za/http://www.doc.gov.za/http://www.doc.gov.za/index.php?option=com_content&view=article&id=113&Itemid=127http://www.doc.gov.za/index.php?option=com_content&view=article&id=113&Itemid=127http://www.doc.gov.za/index.php?option=com_content&view=article&id=113&Itemid=127http://www.nyda.gov.za/http://www.nyda.gov.za/http://www.nyda.gov.za/http://www.nyda.gov.za/http://www.doc.gov.za/index.php?option=com_content&view=article&id=113&Itemid=127http://www.doc.gov.za/http://www.info.gov.za/issues/job_creation/#docshttp://www.info.gov.za/issues/job_creation/#expertshttp://www.info.gov.za/issues/job_creation/#speecheshttp://www.info.gov.za/issues/job_creation/#findhttp://www.info.gov.za/issues/job_creation/#programmeshttp://www.info.gov.za/issues/job_creation/#initiativeshttp://www.info.gov.za/issues/job_creation/#backgroundhttp://www.info.gov.za/issues/job_creation/#budgethttp://www.info.gov.za/issues/job_creation/#update
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    Young people receiving non-financial interventions 106 147

    Loans disbursed through micro finance, group and SME lendingR97,2

    million

    Loans issued to micro enterprises, groups and SMEs 33 975

    Number of jobs created 73 920

    Number of business-support consultancy vouchers issued to young

    people7 516

    Value of business opportunities sourced and accessed by youngpeople

    R193,7million

    Number of youth who served their communities throughparticipation in the National Youth Service

    138 990

    Number of youth accessing information through NYDA service

    delivery access points2 066 151

    Number of NYDA information dissemination and access points 205

    Source: NYDA, April 2009 to April 2011

    The Chairperson of theJobs FundInvestment Committee, Mr Frans Baleni, on 3December 2012 announced the launch of the Job Fund's third call for fundingproposals.

    The third call for proposals is a request for applications from initiatives in enterprise

    development and infrastructure.

    The Enterprise Development window looks for initiatives that develop innovative

    commercial approaches to long-term job creation in ways that combineprofitability with high social impact.

    The Infrastructure window of the Job Fund will co-finance light infrastructureinvestment projects which are necessary to unlock job creation potential in aparticular area.Read more[PDF]

    The Department of Labour seeks to register 600 000 work seekers by 2013 usingthe Public Employment Services (PES). The Department plans to procure a set ofbuses that will roam the country to register job seekers, part of a campaign to ramp up

    and keep an up-to-date national data of job seekers. The Minister of Labour, MrsMildred Oliphant, introduced the concept of aJobs Fairas a first step towards building aworking relationship with social partners and providing a link between work seekersand potential job opportunities.Read more...

    TheMid-Term Review Report[PDF] released on 1 June 2012, indicates that although

    Government have not created sufficient jobs to meet the demand, significant advanceshave been made in the coordination of growth strategies, the New Growth Path andstakeholder agreements. Government has made progress with labour absorbing

    industrial development strategies in manufacturing, mineral products, procurementreform and the Jobs Fund.

    Budget for jobs

    http://www.jobsfund.org.za/http://www.jobsfund.org.za/http://www.jobsfund.org.za/http://www.jobsfund.org.za/news/Jobs%20fund%20media%20statement%20for%2003%20December%202012.pdfhttp://www.jobsfund.org.za/news/Jobs%20fund%20media%20statement%20for%2003%20December%202012.pdfhttp://www.jobsfund.org.za/news/Jobs%20fund%20media%20statement%20for%2003%20December%202012.pdfhttp://www.info.gov.za/speech/DynamicAction?pageid=461&sid=28132&tid=71612http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=28132&tid=71612http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=28132&tid=71612http://www.search.gov.za/info/vql.jsp?qa=2&rps=20&rsm=true&q=%28%28labour%3CNOT%3Ewine%29%3CIN%3ETitle%29%3CAND%3E%28dc.Date%3E%3D2012%2F05%2F31%29%3CAND%3E%28dc.Date%3C%3D2012%2F06%2F08%29&s=true&st=v&xcb=1339146416516http://www.search.gov.za/info/vql.jsp?qa=2&rps=20&rsm=true&q=%28%28labour%3CNOT%3Ewine%29%3CIN%3ETitle%29%3CAND%3E%28dc.Date%3E%3D2012%2F05%2F31%29%3CAND%3E%28dc.Date%3C%3D2012%2F06%2F08%29&s=true&st=v&xcb=1339146416516http://www.search.gov.za/info/vql.jsp?qa=2&rps=20&rsm=true&q=%28%28labour%3CNOT%3Ewine%29%3CIN%3ETitle%29%3CAND%3E%28dc.Date%3E%3D2012%2F05%2F31%29%3CAND%3E%28dc.Date%3C%3D2012%2F06%2F08%29&s=true&st=v&xcb=1339146416516http://www.info.gov.za/view/DownloadFileAction?id=166338http://www.info.gov.za/view/DownloadFileAction?id=166338http://www.info.gov.za/view/DownloadFileAction?id=166338http://www.info.gov.za/view/DownloadFileAction?id=166338http://www.search.gov.za/info/vql.jsp?qa=2&rps=20&rsm=true&q=%28%28labour%3CNOT%3Ewine%29%3CIN%3ETitle%29%3CAND%3E%28dc.Date%3E%3D2012%2F05%2F31%29%3CAND%3E%28dc.Date%3C%3D2012%2F06%2F08%29&s=true&st=v&xcb=1339146416516http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=28132&tid=71612http://www.jobsfund.org.za/news/Jobs%20fund%20media%20statement%20for%2003%20December%202012.pdfhttp://www.jobsfund.org.za/
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    Job creation remains a central priority of government, Minister of Finance PravinGordhan said in the Budget Speech for 2012. He provided an additional R4.8 billion

    over the 2012 MTEF period for the expanded public works programme, bringing itsallocations to a total of R77.8 billion.

    The community work programmereceived an additional R3.5 billion, which

    gives it a total of R6.2 billion, enabling the number of people employed toincrease to 332 000 in 2014/15 from 90 000 in March 2011.

    Working for Waterand Working on Firereceived an additional R1.1 billion (a

    total of R7.7 billion) providing for a total of 135 000 jobs over the medium term.

    The non-state sector programme received an additional R345 million (a total ofR1.1 billion).

    The National Rural Youth Service Corpsreceived an additional R200 million(a total of R900 million) over the next three years.

    R300 million was added to the arts and culture sectorfor job creation.

    TheNational Development Plan,released in August 2012, proposes the creation of 11

    million more jobs by 2030, among others by expanding the public works programme,

    lowering the cost of doing business and costs for households and helping matchunemployed workers to jobs.

    In the mid-year Lekgotla of 26 - 28 July 2011, Cabinet adopted a12 pointimplementation planon job creation, within the ambit of the New Growth Path. This

    does not mean that other programmes will be halted. These areas are being singled outbecause they are urgent and effective.

    The drive to create jobs

    President Jacob Zuma announced in theState of the Nation Address for 2011that allgovernment departments will align their programmes with the job creation imperative.

    The provincial and local government spheres were requested to do the same, and 2011was declared a year of job creation through meaningful economic transformation andinclusive growth.

    The2011 Budgetproposed a range of measures to accelerate employment creationover the period ahead, including R9 billion that has been set aside over the next three

    years for a Jobs Fund to co-finance innovative public- and private-sector employmentprojects.

    ThePresidential Job Summiton 18 March 2011 created an opportunity to explore therole that the business sector can play in achieving key deliverables of governments jobcreation plans.

    This was followed by aPresidential Labour Summit on job creationon 19 April 2011.

    The parties involved agreed to take these issues forward. In the first phase of

    discussions, the focus will be on immediate deliverables that can be rapidlyimplemented, and to lay the basis for deeper dialogue on the systemic and structuralissues that would need to be addressed to achieve the goal of five million new jobs by

    2020.

    In the State of the Nation Address for 2011, President Zuma said that research had

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    indicated that we could create jobs in six priority areas:

    infrastructure development

    agriculture

    mining and beneficiation

    manufacturing

    the green economy tourism.

    Government initiatives

    The Gauteng Department of Social Development has launched the first of 20job

    centresto address unemployment and poverty among the province's youth.

    Government established ajobs fundof R9 billion to finance new job-creationinitiatives over the next three years.

    TheIndustrial Development Corporationhas set aside R10 billion over the next

    five years for investment in such economic activities with a high jobs potential.This is done through itsGro-E Scheme.

    R20 billion in tax allowances or tax breaks will promote investments, expansions

    and upgrades in the manufacturing sector. For a project to qualify, the minimuminvestment must be R200 million for new projects, and R30 million forexpansion and upgrades.

    Government will continue to provide financial and non-financial support to small,

    medium, and micro enterprises (SMMEs), small scale agriculture as well ascooperatives.

    Government is considering merging the three agenciesKhula,theSA Micro-

    Finance Apex Fundand the IDCs small business funding into a single unit. Thiswill cut administrative costs, avoid duplication and direct more resources to

    small business. The campaign to pay SMMEs on time, within 30 days, is proceeding well.

    TheDepartment of Trade and Industrypayment hotline (0860 766 3729)received about 20 000 calls in the 2010/11 financial year, and the value of

    payments facilitated was R210 million. Other departments have launched their

    own initiatives, for example the Re Ya Patala (We Pay) initiative oftheDepartment of Public Works(0800 782 542).

    In communications, television and radio signals will be converted from the

    analogue platform to the more advanced digital signal which will enable quality

    pictures and sound. This process will create jobs in manufacturing, packaging,distribution and installation.

    The bid to host theSquare Kilometre Arrayradio telescope has already provided800 construction job opportunities in the Northern Cape and will create a further

    100 jobs in 2011/12. Through the combined programmes of business support, enterprise financing

    and labour intensive activities in the social sector, 1 355 new jobs were

    facilitated by theNational Youth Development Agency(NYDA) in 2011/12. Atotal of 2 039 young people were enrolled on the matric rewrite project and

    close to 5 000 were provided with career guidance.

    TheDepartment of Public Workshas set aside R210 million to hire and train

    unemployed peopleto fix potholes,build low bridges and maintain public garden

    spaces following the recent floods across the country.

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    Government has put President Jacob Zumas job-creation plans into action byannouncing the creation of120 000 permanent jobsin infrastructure

    development. The organisations that have been earmarked to create jobsinclude Eskom and the departments of water affairs and of environmentalaffairs.

    The Department of Transport will create 70 000 jobs in a R6,4-billion project

    torepair potholes.The project is part of a new labour-intensive road-maintenance programme calledS'hamba Sonke(walking together). A total ofR22,3 billion will be spent between February 2011 and April 2014.

    Initiatives are under way to promote rural employment, such as theNational

    Rural Youth Service Corps(NARYSEC), and provide stepped up support foragricultural producers.

    Funding has been allocated in the 2011 budget for renewable energy,

    environmental protection and "green" economy initiatives.

    Details of a R5 billion youth development subsidy are set out in a discussion

    paper,Confronting youth unemployment: policy options[PDF].

    TheCommunity Work Programme(CWP) is an innovative offering from

    government to provide a job safety net for unemployed people of working age.This programme created more than 79 000 work opportunities up to the second

    quarter of 2011/12, benefitting women and the youth particularly from the poorrural families. In addition, the Human Settlements Programme created over 50000 direct jobs, 4 653 indirect jobs and 21 446 induced job opportunities.

    The Minister of Labour approved various initiatives aimed at creatingemployment through training and re-skilling of workers in order to give them

    capacity to compete in the open economy.

    o Productivity South Africas social plan.Funds were committed in this

    financial year towards the Social Plan with the aim of saving a further 20000jobs.

    o Funding for the training of the Unemployed scheme. The scheme is

    aimed at developing skills in specific artisan trades with a view totrainees being eventually employed and possessing scarce skills. The

    training for the Unemployed scheme is done in partnership with thevarious sector education and training authorities (SETAs).

    Vuk'uzenzele has a regular section withemployment news.

    Government programmes supporting job creation

    Expanded Public Works Programme(EPWP) - provides poverty and income relief

    through temporary work for the unemployed. EPWP includes theHome-Based

    Community CareandFood for WasteProgrammes.

    The New Growth Path(NGP) - aimed at enhancing growth, employment creationand equity.

    the dtiprovidesfinancial supportto qualifying companies in various sectors of

    the economy. Financial support is offered for various economic activities,including manufacturing, business competitiveness, export development and

    market access, as well as foreign direct investment.

    Finance for Small Businesseso Khula Enterprise Finance Ltd

    o South African Micro-Finance Apex Fund

    o Technology for Sustainable Livelihoodso Registering Your Business

    Working for Water- eradicates invasive alien vegetation to conserve water and

    http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=16230&tid=28149http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=16230&tid=28149http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=16230&tid=28149http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=16230&tid=28149http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=16230&tid=28149http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=16230&tid=28149http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=17858&tid=32221http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=17858&tid=32221http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=17858&tid=32221http://www.ruraldevelopment.gov.za/services/narysec#.UKOHH2dvE24http://www.ruraldevelopment.gov.za/services/narysec#.UKOHH2dvE24http://www.ruraldevelopment.gov.za/services/narysec#.UKOHH2dvE24http://www.ruraldevelopment.gov.za/services/narysec#.UKOHH2dvE24http://www.info.gov.za/issues/job_creation/www.treasury.gov.za/.../Confronting%20youth%20unemployment%20-%20Policy%20options.pdfhttp://www.info.gov.za/issues/job_creation/www.treasury.gov.za/.../Confronting%20youth%20unemployment%20-%20Policy%20options.pdfhttp://www.info.gov.za/issues/job_creation/www.treasury.gov.za/.../Confronting%20youth%20unemployment%20-%20Policy%20options.pdfhttp://www.cogta.gov.za/cwp/http://www.cogta.gov.za/cwp/http://www.cogta.gov.za/cwp/http://www.turnaroundsolutions.co.za/http://www.turnaroundsolutions.co.za/http://www.info.gov.za/vukuzenzele/Pages/Index/EmploymentNews.htmhttp://www.info.gov.za/vukuzenzele/Pages/Index/EmploymentNews.htmhttp://www.info.gov.za/vukuzenzele/Pages/Index/EmploymentNews.htmhttp://www.epwp.gov.za/http://www.epwp.gov.za/http://www.info.gov.za/aboutgovt/programmes/index.html#homecarehttp://www.info.gov.za/aboutgovt/programmes/index.html#homecarehttp://www.info.gov.za/aboutgovt/programmes/index.html#homecarehttp://www.info.gov.za/aboutgovt/programmes/index.html#homecarehttp://www.info.gov.za/vukuzenzele/number22/features_06.htmhttp://www.info.gov.za/vukuzenzele/number22/features_06.htmhttp://www.info.gov.za/vukuzenzele/number22/features_06.htmhttp://www.info.gov.za/aboutgovt/programmes/new-growth-path/index.htmlhttp://www.info.gov.za/aboutgovt/programmes/new-growth-path/index.htmlhttp://www.thedti.gov.za/financial_assistance/financial_assistance.jsphttp://www.thedti.gov.za/financial_assistance/financial_assistance.jsphttp://www.thedti.gov.za/financial_assistance/financial_assistance.jsphttp://www.info.gov.za/issues/govtprog/small_business.htm#fsbhttp://www.info.gov.za/issues/govtprog/small_business.htm#fsbhttp://www.info.gov.za/issues/govtprog/small_business.htm#kefhttp://www.info.gov.za/issues/govtprog/small_business.htm#kefhttp://www.info.gov.za/issues/govtprog/small_business.htm#samafhttp://www.info.gov.za/issues/govtprog/small_business.htm#samafhttp://www.info.gov.za/issues/govtprog/small_business.htm#tslhttp://www.info.gov.za/issues/govtprog/small_business.htm#tslhttp://www.info.gov.za/issues/govtprog/small_business.htm#regbhttp://www.info.gov.za/issues/govtprog/small_business.htm#regbhttp://www.dwaf.gov.za/wfw/http://www.dwaf.gov.za/wfw/http://www.dwaf.gov.za/wfw/http://www.info.gov.za/issues/govtprog/small_business.htm#regbhttp://www.info.gov.za/issues/govtprog/small_business.htm#tslhttp://www.info.gov.za/issues/govtprog/small_business.htm#samafhttp://www.info.gov.za/issues/govtprog/small_business.htm#kefhttp://www.info.gov.za/issues/govtprog/small_business.htm#fsbhttp://www.thedti.gov.za/financial_assistance/financial_assistance.jsphttp://www.info.gov.za/aboutgovt/programmes/new-growth-path/index.htmlhttp://www.info.gov.za/vukuzenzele/number22/features_06.htmhttp://www.info.gov.za/aboutgovt/programmes/index.html#homecarehttp://www.info.gov.za/aboutgovt/programmes/index.html#homecarehttp://www.epwp.gov.za/http://www.info.gov.za/vukuzenzele/Pages/Index/EmploymentNews.htmhttp://www.turnaroundsolutions.co.za/http://www.cogta.gov.za/cwp/http://www.info.gov.za/issues/job_creation/www.treasury.gov.za/.../Confronting%20youth%20unemployment%20-%20Policy%20options.pdfhttp://www.ruraldevelopment.gov.za/services/narysec#.UKOHH2dvE24http://www.ruraldevelopment.gov.za/services/narysec#.UKOHH2dvE24http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=17858&tid=32221http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=16230&tid=28149http://www.info.gov.za/speech/DynamicAction?pageid=461&sid=16230&tid=28149
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    the environment, providing jobs and training to approximately 20 000 peopleper annum.

    Working on Fireis a multi-partner organisation focused on integrated firemanagement and veld and wild fire fighting, combined with the need to create

    jobs and develop skills.

    Working for Wetlandsuses wetland rehabilitation as a vehicle for job creation,

    skills development, and the wise use of wetlands. Small Medium Enterprise Development- a grant programme offering financial

    help to tourism-related projects.

    Tourism Enterprise Development- a grant-making, training and on-going

    assistance programme.

    TheSouth African Decent Work Country programme- through this programme,theInternational Labour Organisationand government, organised business,

    organised labour and the community constituency give support to initiativesaimed at promoting the decent work agenda.

    Finding a job

    For every job available, you will always have to compete with other job-seekers. Thisinformation should help you to find a job, prepare you for the interview and starting the

    job.Read more...

    What does government say about job creation?

    Read the speeches and statements for 2012

    Read the speeches and statements for 2011

    What do academics say about job creation?

    Econ3x3is a newly created web forum for critical debate on unemployment andemployment, income distribution and inclusive growth in South Africa. It publishes

    concise, accessible, policy relevant research-based contributions and expert

    commentaries. It is an initiative of the Research Project on Employment, IncomeDistribution and Inclusive Growth, which is based at SALDRU at the University of CapeTown and supported by the National Treasury.

    Resolved Question

    Show me another

    Does a government have a moral responsibility to provideeach citizen with a job?

    If not, why not?

    If so, why and is providing such a job at a minimum wage level sufficient to meet your standard?

    3 years ago

    Report Abuse

    http://www.workingonfire.org/http://www.workingonfire.org/http://wetlands.sanbi.org/http://wetlands.sanbi.org/http://www.info.gov.za/issues/govtprog/tourism_2008.htm#smedhttp://www.info.gov.za/issues/govtprog/tourism_2008.htm#smedhttp://www.info.gov.za/issues/govtprog/tourism_2008.htm#tedhttp://www.info.gov.za/issues/govtprog/tourism_2008.htm#tedhttp://www.ilo.org/jobspact/resources/lang--en/WCMS_145419/index.htmhttp://www.ilo.org/jobspact/resources/lang--en/WCMS_145419/index.htmhttp://www.ilo.org/jobspact/resources/lang--en/WCMS_145419/index.htmhttp://www.ilo.org/http://www.ilo.org/http://www.info.gov.za/issues/jobs/index.htmlhttp://www.info.gov.za/issues/jobs/index.htmlhttp://www.info.gov.za/issues/jobs/index.htmlhttp://www.info.gov.za/speech/DynamicAction?pageid=465&subid=108&by=Subject&tabval=2012&tabfield=year&for=Job%20creation&orderby=speech_date%20deschttp://www.info.gov.za/speech/DynamicAction?pageid=465&subid=108&by=Subject&tabval=2012&tabfield=year&for=Job%20creation&orderby=speech_date%20deschttp://www.info.gov.za/speech/DynamicAction?pageid=465&subid=108&by=Subject&tabval=2011&tabfield=year&for=Job%20creation&orderby=speech_date%20deschttp://www.info.gov.za/speech/DynamicAction?pageid=465&subid=108&by=Subject&tabval=2011&tabfield=year&for=Job%20creation&orderby=speech_date%20deschttp://www.econ3x3.org/http://www.econ3x3.org/http://uk.answers.yahoo.com/question/nextQuestion;_ylt=AnSsbzacqrNyrj0I1nJjBw0.LxV.;_ylv=3?qid=20100927023717AAJGJj7&cid=396545448&state=resolvedhttp://uk.answers.yahoo.com/question/nextQuestion;_ylt=AnSsbzacqrNyrj0I1nJjBw0.LxV.;_ylv=3?qid=20100927023717AAJGJj7&cid=396545448&state=resolvedhttp://uk.answers.yahoo.com/question/report;_ylt=ApDFsg7is4GaGf5VG3T9UW8.LxV.;_ylv=3?qid=20100927023717AAJGJj7&kid=A4F3AXHVGG6ceCmiUQ6P&date=2010-09-27+02%3A37%3A17&.crumb=rskNC0lzWk8&s=qhttp://uk.answers.yahoo.com/question/report;_ylt=ApDFsg7is4GaGf5VG3T9UW8.LxV.;_ylv=3?qid=20100927023717AAJGJj7&kid=A4F3AXHVGG6ceCmiUQ6P&date=2010-09-27+02%3A37%3A17&.crumb=rskNC0lzWk8&s=qhttp://uk.answers.yahoo.com/question/report;_ylt=ApDFsg7is4GaGf5VG3T9UW8.LxV.;_ylv=3?qid=20100927023717AAJGJj7&kid=A4F3AXHVGG6ceCmiUQ6P&date=2010-09-27+02%3A37%3A17&.crumb=rskNC0lzWk8&s=qhttp://uk.answers.yahoo.com/question/nextQuestion;_ylt=AnSsbzacqrNyrj0I1nJjBw0.LxV.;_ylv=3?qid=20100927023717AAJGJj7&cid=396545448&state=resolvedhttp://www.econ3x3.org/http://www.info.gov.za/speech/DynamicAction?pageid=465&subid=108&by=Subject&tabval=2011&tabfield=year&for=Job%20creation&orderby=speech_date%20deschttp://www.info.gov.za/speech/DynamicAction?pageid=465&subid=108&by=Subject&tabval=2012&tabfield=year&for=Job%20creation&orderby=speech_date%20deschttp://www.info.gov.za/issues/jobs/index.htmlhttp://www.ilo.org/http://www.ilo.org/jobspact/resources/lang--en/WCMS_145419/index.htmhttp://www.info.gov.za/issues/govtprog/tourism_2008.htm#tedhttp://www.info.gov.za/issues/govtprog/tourism_2008.htm#smedhttp://wetlands.sanbi.org/http://www.workingonfire.org/
  • 7/27/2019 Who is Responsible for Job Creation

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    L

    Best Answer- Chosen by Asker

    The government has the moral responsibility to ensure that the economy is managed in such a way that

    there are enough jobs available, whether in the private or public sector, for those who need them.

    In addition, such jobs should pay wages, and have terms and conditions which allow jobholders to live a

    dignified lifestyle, without having to work excessively long hours, or take second jobs, or rely on benefits,

    to get by.

    In the UK, the minimum wage is far too low to achieve this, and should be set at two thirds of average

    male earnings, or the European decency threshold, whichever is the greatest

    The problem with the way in which our current minimum wage works, is that too many employers across

    a wide range of industries, implement it as the norm, which leads to people having to work 60 hours a

    week plus, in order to get a living wage.

    3 years ago Report Abuse

    2 people rated this as good

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    Asker's Comment:

    All your answers were great! But I can only pick one best answer... :(

    Thank you all

    2stars - mark this asInteresting!

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    Other Answers(11)

    JZDUnless the govt employs you directly (like a civil servant) how can they have a moral duty to offer you a

    job in the private sector? They have no ability to get you a job in the private sector.

    And why should the govt. employ you if they don't need an employee or if you do not have the

    qualifications to get the job.

    The Govt recognises the necessity to have some basic level of income which is what the benefit system is

    there for. The minimum wage is deigned to avoid exploitation.

    Source(s):

    http://uk.answers.yahoo.com/my/profile;_ylt=AnwsQnoAyEPInr4R9YQzOI0.LxV.;_ylv=3?show=T5v1EVZjaahttp://uk.answers.yahoo.com/my/profile;_ylt=AnwsQnoAyEPInr4R9YQzOI0.LxV.;_ylv=3?show=T5v1EVZjaahttp://uk.answers.yahoo.com/answer/report;_ylt=AgeZhMiPTRbUkWbhdRGSTEI.LxV.;_ylv=3?qid=20100927023717AAJGJj7&kid=IMFoW0faO2riNKgZJobT&.crumb=.rskNC0lzWk8http://uk.answers.yahoo.com/answer/report;_ylt=AgeZhMiPTRbUkWbhdRGSTEI.LxV.;_ylv=3?qid=20100927023717AAJGJj7&kid=IMFoW0faO2riNKgZJobT&.crumb=.rskNC0lzWk8http://uk.answers.yahoo.com/my/profile_create?from=http%3A%2F%2Fuk.answers.yahoo.com%2Fquestion%2Findex%3Fqid%3D20100927023717AAJGJj7http://uk.answers.yahoo.com/my/profile_create?from=http%3A%2F%2Fuk.answers.yahoo.com%2Fquestion%2Findex%3Fqid%3D20100927023717AAJGJj7http://uk.answers.yahoo.com/question/index;_ylt=All_hzmnKUP0308Xot5LMJg.LxV.;_ylv=3?qid=20100927023717AAJGJj7&link=mailtohttp://uk.answers.yahoo.com/question/index;_ylt=All_hzmnKUP0308Xot5LMJg.LxV.;_ylv=3?qid=20100927023717AAJGJj7&link=mailtohttp://uk.answers.yahoo.com/question/index?qid=20100927023717AAJGJj7#yan-comment-formhttp://uk.answers.yahoo.com/question/index?qid=20100927023717AAJGJj7#yan-comment-formhttp://uk.answers.yahoo.com/my/profile_create?from=http%3A%2F%2Fuk.answers.yahoo.com%2Fmy%2Fmy_add_trace_q%3Fqid%3D20100927023717AAJGJj7%26expires%3D0%26.crumb%3DrskNC0lzWk8http://uk.answers.yahoo.com/my/profile_create?from=http%3A%2F%2Fuk.answers.yahoo.com%2Fmy%2Fmy_add_trace_q%3Fqid%3D20100927023717AAJGJj7%26expires%3D0%26.crumb%3DrskNC0lzWk8http://uk.answers.yahoo.com/my/profile;_ylt=AkBcn8EskD2WCgml6rZSmH0.LxV.;_ylv=3?show=AA11934014http://uk.answers.yahoo.com/my/profile;_ylt=AkBcn8EskD2WCgml6rZSmH0.LxV.;_ylv=3?show=AA11934014http://uk.answers.yahoo.com/my/profile;_ylt=Akw.MWRvoz0NvJRaCnh1PxA.LxV.;_ylv=3?show=AA11934014http://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=883b65d211900a099aaace84fb1fb83faahttp://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=I2ctOHtxaahttp://uk.answers.yahoo.com/my/profile;_ylt=AtnL2R5_s_MnYMumaZWnreU.LxV.;_ylv=3?show=T5v1EVZjaahttp://uk.answers.yahoo.com/my/profile;_ylt=Akw.MWRvoz0NvJRaCnh1PxA.LxV.;_ylv=3?show=AA11934014http://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=883b65d211900a099aaace84fb1fb83faahttp://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=I2ctOHtxaahttp://uk.answers.yahoo.com/my/profile;_ylt=AtnL2R5_s_MnYMumaZWnreU.LxV.;_ylv=3?show=T5v1EVZjaahttp://uk.answers.yahoo.com/my/profile;_ylt=Akw.MWRvoz0NvJRaCnh1PxA.LxV.;_ylv=3?show=AA11934014http://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=883b65d211900a099aaace84fb1fb83faahttp://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=I2ctOHtxaahttp://uk.answers.yahoo.com/my/profile;_ylt=AtnL2R5_s_MnYMumaZWnreU.LxV.;_ylv=3?show=T5v1EVZjaahttp://uk.answers.yahoo.com/my/profile;_ylt=Akw.MWRvoz0NvJRaCnh1PxA.LxV.;_ylv=3?show=AA11934014http://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=883b65d211900a099aaace84fb1fb83faahttp://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=I2ctOHtxaahttp://uk.answers.yahoo.com/my/profile;_ylt=AtnL2R5_s_MnYMumaZWnreU.LxV.;_ylv=3?show=T5v1EVZjaahttp://uk.answers.yahoo.com/my/profile;_ylt=Akw.MWRvoz0NvJRaCnh1PxA.LxV.;_ylv=3?show=AA11934014http://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=883b65d211900a099aaace84fb1fb83faahttp://uk.answers.yahoo.com/my/profile;_ylt=ApjIVlrr.SjJ1lDwxTIpRLU.LxV.;_ylv=3?show=I2ctOHtxaahttp://uk.answers.yahoo.com/my/profile;_ylt=AtnL2R5_s_MnYMumaZWnreU.LxV.;_ylv=3?show=T5v1EVZjaahttp://uk.answers.yahoo.com/my/profile;_ylt=AkBcn8EskD2WCgml6rZSmH0.LxV.;_ylv=3?show=AA11934014http://uk.answers.yahoo.com/my/profile_create?from=http%3A%2F%2Fuk.answers.yahoo.com%2Fmy%2Fmy_add_trace_q%3Fqid%3D20100927023717AAJGJj7%26expires%3D0%26.crumb%3DrskNC0lzWk8http://uk.answers.yahoo.com/question/index?qid=20100927023717AAJGJj7#yan-comment-formhttp://uk.answers.yahoo.com/question/index;_ylt=All_hzmnKUP0308Xot5LMJg.LxV.;_ylv=3?qid=20100927023717AAJGJj7&link=mailtohttp://uk.answers.yahoo.com/my/profile_create?from=http%3A%2F%2Fuk.answers.yahoo.com%2Fquestion%2Findex%3Fqid%3D20100927023717AAJGJj7http://uk.answers.yahoo.com/answer/report;_ylt=AgeZhMiPTRbUkWbhdRGSTEI.LxV.;_ylv=3?qid=20100927023717AAJGJj7&kid=IMFoW0faO2riNKgZJobT&.crumb=.rskNC0lzWk8http://uk.answers.yahoo.com/my/profile;_ylt=AnwsQnoAyEPInr4R9YQzOI0.LxV.;_ylv=3?show=T5v1EVZjaa
  • 7/27/2019 Who is Responsible for Job Creation

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    I'm a lawyer

    o 3 years ago

    o Report Abuse

    shevek_v

    Morality and government in a capitalist economy are total strangers. To be able provide each citizen witha job requires a command economy - the antithesis of what we are supposed to have now - a free market

    economy. Within a free market economy a certain level of unemployment is necessary for the functioning

    of the system as a means of keeping labour costs down.

    In the current economic system morality is subordinated to the exigencies of making profits. As we have

    seen with the so-called credit crunch the interests of shareholders, bankers and financiers take

    precedence over everything else.

    The Coalition's efforts to cut public spending without regard to the consequences for ordinary working

    people, the vulnerable, the aged and the poor are just one example of the lack of morality that is built into

    the elitist socioeconomic system that holds sway over global society.

    o

    3 years agoo Report Abuse

    o 1 person rated this as good

    eye welcome their hate

    Yes, the government is responsible to provide us with jobs because:

    1) We are the government, which is to say government provision of jobs is simply a conscious decision to

    organize ourselves as an inclusive cooperative society.

    2) The only time we ever do not have 'jobs' is when others in our society consciously decide to exclude us

    from participation, so philosophically speaking, the only way to practice 'individual' 'responsibility' for our

    personal employment is to commence with socially enforced exclusion. If you are going to prevent me

    from supporting myself then you are morally responsible to provide me with an alternative, otherwise youare simply committing something along the lines of murder.

    3) Yes, not only is the government morally responsible to include us in society but responsible to do it at

    sufficient level as well. If your plan for my inclusion to put me to work on an allowance of food supplies

    that will starve me to death then your plan is essentially murder.

    The organized society that accommodates individual participatory exclusion along with punitive conditions

    for those it excludes is a society that is essentially murdering those citizens it finds by some process

    'unworthy'.

    o 3 years ago

    o Report Abuse

    o 1 person rated this as good

    RICHiii

    No, because in a Capitalist state there is a requirement for there to be a pool of unemployed workers

    waiting for work.

    In UK and thus the EU, the state provides benefits to help workers who are unemployed. However, a wise

    worker sets aside savings in the good years to take care of himself and his family in the lean years. Also

    wise workers buy insurance cover for when they are unemployed and do not simply rely upon state hand-

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  • 7/27/2019 Who is Responsible for Job Creation

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    outs which might not be sufficient to pay such as a mortgage and etc.

    The job of government is to allow free trade to flourish and to avoid putting difficulties before employers

    thus making it hard to run a business to make a profit and etc.

    Workers should be encouraged to buy shares in the firms where they are employed, thus they will

    become owners of the means of production and can have a vote at the AGM each year.

    Workers should also join a Trade Union and remain loyal to their employer because the workers have a

    vested interest in seeing their company remains profitable, etc.

    Governments should keep their noses out of business, every time they do so, that's when the c.r.a.p. hits

    the fan.

    The banking sector should be either broken up into smaller units or else divided into two distinct and

    separate halves.

    Half no. 1 where we all put our savings with minimum risk - interest of about 2 to3% etc

    Half no. 2 casino investments, hedge funds, money scams, wonga issues and etc

    Few people seem to be aware that there are some banks with bigger money than the country of which

    they are a citizen. Bear this in mind when think about what to do with the banks, which have already cost

    us dear.

    o 3 years ago

    o Report Abuse

    o 1 person rated this as good

    xpatinas...

    No, the government does not owe you a job. There is a federal minimum wage and, some municipalities

    (CA for example) have a higher minimum wage than the federal mandate. Whether or not that meets your

    standard is up to you and not the government.

    o 3 years ago

    o Report Abuse

    gcbtradi...

    No, you have a moral responsibility to provide for yourself and your family. If you can not find a job, create

    one.

    You also have a moral responsibility to be worth more than minimum wage.

    o 3 years ago

    o Report Abuse

    o 6 people rated this as good

    lawrence...

    No, because the economy is best left to the private sector; government control strangles the economy.

    o 3 years ago

    o Report Abuse

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  • 7/27/2019 Who is Responsible for Job Creation

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    Sarky

    Off course they don't.

    In a free market economy it is NOT the governments responsibility, moral or legal, to offer employment to

    anyone.o 3 years ago

    o Report Abuse

    Janice

    No you finding a job is YOUR responsibility. The government is there to provide things like defense and

    mail not handle everything in your life for you.

    o 3 years ago

    o Report Abuse

    o 4 people rated this as good

    hornet

    Yes it has a duty to OFFER a job, if it's not accepted then they are on their own. Also the minimum wage

    is too low.

    o 3 years ago

    o Report Abuse

    o 1 person rated this as good

    nas88car300#l 20 MK takes chase ...

    nope .. you have to go out and get one'

    nothing should be just handed to you

    o 3 years ago

    How Government Can Help Create Jobs 3Suggestions July 22, 2011 inpolitics| Tags:Business Plan,Deflation,Inflation,investment,job creation,job growth,playing

    politics,QE3,Quantitative Easing,regulation

    1 Votes

    First, lets be clear. Government normally creates jobs that create nothing. Real jobs areones that add value and pay taxes from that added value. Most jobs created by governmentfail that test. So, the thought of Government creating jobs is one that must be understood asnot actually creating jobs, but doing things that will encourage the creation of jobs in theprivate sector. Without the private sector jobs that add the value that is taxed, there are nofunds for the government jobs.

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    Government can be good at coordinating, organizing, regulating, and setting standards. Sowhat can Government do to help create jobs?

    There is an old Bumper sticker that I have on my wall that holds one of the keys to answerthat question. It says, Make Welfare as hard to get as Building Permits. Though a bitsimplistic (like most bumper stickers) it points out the fact that businesses must endure a long

    list of barriers before they can go to work or before they can create jobs. Many, if not most,of those barriers are Government-created.

    Do you remember the teacher keeping the entire class after school because one person in theclass failed to follow instructions? Typically this was done by the teacher for two reasons. Heor she wanted the peer pressure of all those who complied to force the offender to fall intoline. He or she was also probably lazy. The same result could be accomplished by the teacherspending an appropriate amount of time with the offender but that would not be easy. It waseasy just to make everyone do the same thing and the end result was that the offenderusually bowed to the peer pressure. The other 25 members of the class wasted a half hour ormore but the teacher saved a few hours of working with the offender.

    Much of the dreaded paperwork that government requires of businesses is just like that. To

    control a small problem or to keep a very small group of scofflaws in line, government createsa program that punishes and wastes the time of all the others. Need examples? Just try topermit a small wine tasting room on your farm/vineyard. Having done it, I have a list of

    requirements with which I was required to comply that wasted my time and my money, but,did nothing to improve the community anywhere close to time and cost involved. Why shouldI pay for a traffic study (going price about $1,500) for the 4 days a year that my tastingroom will add about 25- 35 cars on our road? Does the lady down the block who has a garagesale every weekend have to do that? She generates far more traffic than we ever will. Doeseveryone who builds a home on a piece of raw land on our road have to do a traffic study? Anew home and the family who lives in it will certainly generate far more traffic in a year thanour winery ever could. Why should I be required to have my septic tank pumped (going price$300-400) and then have a county inspection (over $1000 for the inspector to come out anlook at the system and issue a report)? If my septic system is not up to the additional burden

    of 4 days of wine tasting a year, who is hurt by that? Only me. More wasted time andmoney. No benefit to the community.

    Suggestion Number 1Government at all levels should make an assessment of the numberof people effected by each requirement with which a business must comply. They should look

    at the revenue and see if the number of people required to draw up the requirement plusthose to administer and enforce it are paid for by the fees collected. They should look to seethe size of the problem the requirement was made to resolve. They should see how many areeffected by the problem. If the problem is one person playing his stereo too loud late atnight, does that warrant a law that bans the playing of stereos after 10 p.m. for the entirecommunity? I think we could cut the paperwork barriers to new or increased business activitysignificantly. That would encourage more business and more job creation.

    It is often said that a successful journey starts with a well thought out plan oritinerary. Imagine planning a trip for six months from now. You get airline tickets, rental carreservations, book hotels, and line up special tours or events. Each of these items in your

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    plan is tied to the next. If your plane is late, the car rental office may be closed. If you cantget the rental car, you cant get to your hotel without more money for a cab, etc., etc. But,you know most of these things and know they are not normal and you can handle suchproblems. You are encouraged by your plan that you will have a successful trip so you investin the tickets, car, and rooms.

    Now how would you feel about your trip if the airlines often changed fares or schedules ordestinations after you booked your trip? What about if the car rental companies were known

    to offer a 5 passenger car for $50 a day and then often only had 2 passenger cars that theyrented at $100 per day? What if you booked and paid ($150 per night) for the Hilton andwhen you arrived they said the hotel was full and put you up in the Wally World Hotel downthe street that had a sign saying rooms available by the hour, day, or week? Would you goahead and book your trip and make the investment even though you were uncertain any ofyour plans would work? Not likely.

    Business is much like that. Business plans are made based on known and predictedconditions. The more stable the conditions, the more likely a plan is to succeed and therefore,the more likely a business will find investors. That bodes well for investments and jobgrowth. On the other hand, when things are not stable, investment drops dramatically. Doyou know if we will have inflation or deflation over the next five years? Me either. But, if Iwere planning a business or an investment, I would need to know or at least have a strongbelief. My guess is that Mr. Obama will be convinced by his advisors that we have to keep thebubble inflated at least until the election in November of 2012. To me that means we willhave another round of quantitative easing. In other words, I would bet we will print moremoney and have more inflation. But, I am not in the mood to make any investments with theamazing uncertainty that exists right now. Will Congress and the President get serious aboutbalancing our budget? Until they do, I think investment will be depressed and job creationminimal. Today the only stable things that seem to continue to get investment dollars arebusiness plans tied to government growth/spending, medical care, and the agingpopulation. We seem confident that these things will continue to grow.

    Suggestion Number 2 - Get serious about cutting Government Spending at all levels. If the

    Federal Government had a strong leader who ordered all agencies under his control to cutbudgets by 15% immediately, I think investments would swell. If the Federal Governmentwould stop changing the rules for employers (taxes, fees, requirements to provide health care

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    or pay a fine, etc?), I think investments in business would increase. If our governmentscommitted to plans that would balance budgets, largely through cutting spending, I thinkinvestments would swell as would the job rolls.

    Most business plans are highly complex and detailed. People who seek investment or a loanto expand or start a business must lay out an argument for the business and how it willsucceed. First, it must define what success will mean. Will it be a certain positive cash flow ora certain increase in profit margin to allow the payoff of the required loan? Will it plan for a

    certain return on investment for the investors? Once this definition of success is known, thebusiness planner must show that the risks involved are within reason for the anticipatedreturn.

    They say that the marketplace will tell you the value of any asset. I think that barringgovernment intervention, that is basically true. If for example, you look at corporate bonds,you will see that bonds that pay 5% today command a higher price than ones that pay 1% ifyou assume that both are of equal risk. If Borders Books had a 20% bond offering today, Idont think many people would buy it considering the state of affairs at Borders. Or if theywould, it would be at a huge discount. Government bonds, like T-Bills are offered at 3% andpeople will buy them. Currently, Banks will pay you less than 1% (passbook savings) toborrow your money. The Feds are paying above market interest so they can attract enoughinvestors to cover the ever increasing deficits. As long as banks can borrow money for 1%

    and the Fed will pay them 3%, guaranteed, they need only invest in T-Bills. Why would theyevery lend money to a risky business when they have a guaranteed 2% margin when they buyT-Bills with their money.

    Suggestion Number 3 - The Federal Government needs to balance its budget and stopprinting money. If it would do this, they would not need to pay a premium to sell T-Bills, andbanks would not have the guaranteed margin they now have when they buy T-Bills instead oflending the money. Banks would again have to earn money the hard way, by studyingbusiness plans, evaluating risks and rewards, and then making business loans. This wouldallow new businesses and business expansions, both of which would create jobs. Banksinvesting in T-Bills creates no new jobs.

    Spending more money than in any previous time, borrowing more money than any time (otherthan World War II), and creating administrative and regulatory barriers to free enterprise willnever help create a job. Doing the opposite will. Playing politics and saying that we threatensenior citizens and the poor if we dont continue to increase spending will not create morejobs. Leading the nation to reduce government involvement in our daily lives will help spur on

    more investment and more jobs. I would love to have someone tell me anything thatCongress and the Current Administration are doing that will help increase investment in U.S.business enterprises which will create jobs given the opportunity.