Governor Gary Johnson Unveils 'Program for Real Job Creation'
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Contact: Sue Winchester
801.303.7924
media@ouramericainitiative.com
Governor Gary Johnson Unveils ‘Program for Real Job Creation’
Former Governor of New Mexico says job creation must focus on long-term solutions and improving economic productivity, not quick fixes or so called ‘stimulus programs’
February 8, 2011, New York, NY —Gary Johnson, former Governor of New Mexico and Honorary Chairman of the OUR America Initiative, today issued his “Program for Real Job Creation.” Governor Johnson’s plan focuses on the imperatives that we must balance the federal budget now, as well as increase economic productivity. The plan outlines seven key elements for meaningful job creation.
Announcing his plan, Governor Johnson said, “We can no longer afford to invest in short-term fixes and economic stimulus programs that, in reality, have had a negative impact on job creation and economic stability.” Johnson continued, “What the stimulus frenzy of the past few years has produced is a government that is bankrupt, deficits we cannot sustain, an economy that is quickly being consumed by government and its debt – and precious few jobs.”
Johnson noted that the federal stimulus plan has put the economic recovery on the wrong track, and that it is time to redirect job creation strategies. “It is well past the point when we must reverse course to pursue policies that will, in fact, encourage the private economy and marketplace to put more people to work in real jobs with real futures,” Johnson stated. “As I travel the country and talk with entrepreneurs, established businesses, as well as credible economists, it becomes clear that there are a number of very specific steps we can take to put more Americans to work -- and none of them involve using Federal spending to ‘stimulate’ anything.”
Governor Johnson’s seven-point program is outlined below. He will be attending CPAC (Conservative Political Action Conference) in Washington, DC from February 9 through February 12th, and will be available for press and media. Please contact Sue Winchester at media@ouramericainitiative.com or 801.303.7924 to schedule an interview.
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About Governor Gary Johnson: As Governor of New Mexico from 1994 to 2002, Gary Johnson was known for his common-sense business approach to governing. He eliminated New Mexico’s budget deficit, cut the rate of growth in state government in half and privatized half of the state prisons. During his term, New Mexico experienced the longest period without a tax increase in the state’s history.
Since launching OUR America in 2009, Governor Johnson has traveled to 32 states around the country, engaging the public in open dialogue regarding pertinent issues of the day, including: lowering taxes, reducing deficits and creating jobs. Governor Johnson also supports marijuana legalization, immigration work visas and ending the war in Afghanistan, a conflict he has repeatedly stated the United States can no longer afford.
Additional information at www.ouramericainitiative.com. Twitter: http://twitter.com/GovGaryJohnson. Facebook: http://www.facebook. com/govgaryjohnson
A PROGRAM FOR REAL JOB CREATION
Governor Gary Johnson
The economic turmoil of recent years has many victims. None, however, have been more devastated than the millions of Americans who have lost jobs and those who are today still unable to find work.
Washington’s response to the jobs crisis has largely consisted of spending hundreds of billions of Federal dollars – mostly borrowed – to “stimulate” the economy. Not surprisingly, this effort to use government growth to create private sector employment has not worked. To the contrary, this unprecedented expansion of government has simply exacerbated the problem.
Real and lasting job growth in the United States will only occur by way of a private sector that is allowed to recover and prosper in a policy environment of lower government debt, greater available capital, and less interference in the marketplace.
To achieve real job growth, the Administration and Congress must pursue policies that adhere to two fundamental guiding principles. First, rather than applying short-term fixes, such as so-called stimulus, that have long-term negative consequences, policies should be implemented that make sense in the long run as well as the near term. Second, policies should reflect the reality that true job growth will only be produced by improving economic productivity.
Consistent with those principles, the following steps will produce real jobs for Americans:
1. Balance the Budget Now
The federal debt and continuing deficit spending are clearly unsustainable, due largely to entitlements. That reality stands squarely in the way of investment capital that could and would fuel growth and produce jobs. Likewise, excessive spending – including much of the recent “stimulus” programs, farm subsidies, earmarks and more -- requires added taxation. Added taxation shifts dollars from productive to unproductive activities, and jobs are lost.
The same is true of most of Europe, which, combined with the inherent investment risks in developing countries, creates an opportunity for the U.S. to get its house in order and once again become the world’s safe haven for investment. Bringing entitlements under control and dramatically reducing wasteful spending will result in capital flowing into the system –generating greater investment and greater employment.
2. Reform the Tax Code
The current U.S. tax system is rife with innumerable loopholes, deductions and exemptions; thus, it requires higher tax rates to raise sufficient revenues. Eliminating those features will allow a broader tax base paying lower rates to generate the same revenues. The resulting simpler system will avoid artificial distortions in the marketplace and allow resources to be shifted to job-creating investment and growth.
3. Reduce Regulation
Rules and regulations imposed on businesses are enormous disincentives to increased employment. Obviously, some regulation is necessary; however, much of what government piles on businesses today has little common-sense justification. Also, excessive regulation perversely hampers the entrepreneur and small business. Eliminating unnecessary and counter-productive regulations will facilitate entrepreneurship and free small businesses – the best job creators we have – to compete on a level playing field.
4. Eliminate the Corporate Income Tax
It is no mystery that many businesses can and will gravitate toward countries with lower taxes. Increasingly, the U.S. corporate tax burden exceeds that in many modern, developed countries. The inevitable result is business -- and jobs -- shifting overseas. Eliminating the corporate income tax will increase investment within the U.S. and boost employment. Any impact on the Federal deficit will be slight and short-lived, as greater corporate activity and employment generates increased tax revenues.
5. Allow States to Establish Minimum Wage Rates
In reality, the minimum wage is a crude instrument for redistributing income. While it raises the wages for some, it causes others to have no wages at all. A uniform, federally mandated minimum wage rate distorts regional job markets and needs, and ignores differences in living costs. The majority of states already have minimum wage laws and rates in place, with some being higher than the Federal rate, some lower, and many the same. A few states have no minimum wage separate from the Federal mandate. Allowing these states’ minimum wages to function without Federal interference will reduce distortions and allow the creation of more jobs.
6. Repeal Davis-Bacon
The Davis-Bacon law forces Federal construction projects to pay “prevailing wages”, raising costs and reducing the number of people who are employed to work on those projects. Repealing it will better align those projects with the labor and wage rates actually required to do them. The result will be more jobs.
7. Stop Extending Unemployment Insurance Benefits
While the compassionate argument for extending unemployment benefits can be compelling, that near-term compassion must be weighed against the larger issue of creating an incentive for people to remain unemployed. As the economy shows signs of recovery, further extensions and their distortions of the job market should be avoided.
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