Economic Outlook and Jobs

The source of this article is a Congressional Committee researching the economic outlook and jobs.

An official from Man Power reported that they have experienced the fastest growing demand for employees since 1973.

Morgan Stanley, a chief economist, reported that hiring plans are back to where they were before the recession.

Here are some of the points made during this meeting:

High corporate taxes and high health insurance costs hinder competitiveness.

The economic stimulus did create jobs, but the job losses exceeded the jobs created.

We can stimulate job creation via increased sales, lower taxes, easier credit, lower health care costs, bigger global markets, and giving business confidence that the government will not hinder operations.

Uncertainty of the future keep companies from hiring.

Companies need a presence overseas to sell products which in turn require the construction of buildings here. Some companies can't create jobs here without going overseas because they need the global market to sell their products and services. Government should encourage companies to spend their overseas profits in the US.

There is a financial crisis in Europe. Greece may default on loans. This affects Europe and could affect the US.

A credible economic recovery plan could bring down the cost of debt.

Ending tax cuts and increasing interest rates would reduce job growth.

Temporary tax cuts don't provide incentives to create jobs.

Training programs must be coordinated with companies that need those skills.

People refuse short term contract jobs because they fear losing their employment benefits.

In ten years the public debt will be 87% of the GDP.

Reduce the deficit by cutting mandatory spending and cutting Medicare and Medicaid costs.

States cannot afford the current Medicare and Medicaid costs.

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Lowering health care costs and health insurance costs are a big part of this equation. Government cannot lower health care costs. This responsibility should be delegated to a private organization like the American Medical Association.

Government can provide a means on lowering insurance rates by allowing any insurance firm to sell health insurance in any state. The Federal government or the states could also create web sites wherein all insurance companies are listed.

If more people are buying insurance, the cost per person can decrease. This is one of the reasons Obama seeks a way to insure the millions of uninsured people in the US.

The Republican health reform bill does not include pre-existing conditions. Pre-existing conditions is a major reason why people cannot purchase adequate health insurance coverage.

People are leery of big changes. This is one reason why people are resisting the current health reform packages. But Congress should not dismiss the demand for health reform which is almost unanimous among US voters.

People are frustrated with the gridlock in Congress. The public performance ratings of both the Democratic and the Republican party have decreased dramatically.

People want Obama to lean away from the far left toward the center. Obama's performance approval has lowered to 49%, but his recent White House Summit on Health Reform and his efforts to achieve bi-partisan support for a jobs creation bill might nudge that figure up a bit.