Who all is sick to death of politicians claiming some policy will create jobs when in fact it will destroy them? Such is the outrage from Obama's reaction to the pathetic jobs report.
Obama touted the South Korean Free Trade Agreement as an answer to the jobs crisis. KORUS is projected to lose 159,000 U.S. jobs over 7 years. For Columbia, a loss of 55,000 jobs is projected.
What was the definition of insanity? Doing the same thing over and over expecting different results? The South Korean Trade Agreement is based on the same failed model as NAFTA. The South Korean Trade Agreement is projected to increase the trade deficit in auto and parts alone by $700 million. Why would one bail out the auto industry only to enable unfair imports of Korean autos?
Panama is a tax haven with over 400,000 corporations located there to avoid paying taxes. If that trade deal goes through what meager U.S. tax haven laws we have now will be challenged. How's that for balancing the budget deficit?
Even Ben Bernanke has shown how currency manipulation is going on unabated and as a result these emerging economies, such as South Korea, are unfairly increasing their exports.
Ever wonder why Democrats are fighting so hard for trade adjustment assistance, or funds, re-training for those displaced by trade agreements? Because they know Americans will lose their jobs from these trade deals. It's a token payout to those who lose their jobs due to bad trade, outsourcing.
Even worse, the South Korean Trade Agreement is going to be a boom for unregulated financial derivatives. It literally allows a foreign corporation to challenge U.S. law as a violation of a trade pact.
What about Obama's other demands?
Investing in highway and rail will create construction jobs, no doubt about it. But how well did a payroll tax holiday work already? Last December Congress lowered the social security payroll tax from 6.2% to 4.2% for 2011, but for the employee, not the employer! That does nothing to reduce the cost of hiring for businesses. Even worse, such a tax holiday drains social security, which we see is under attack under the cover of deficit reductions. Why bother to push for a really small tax holiday, which clearly in the big scheme of hiring costs is a drop in the bucket when it's clear businesses are risk adverse?
Patent reform is yet another multinaitonal corporate agenda item and actually hurts inventors and will stifle start-ups and risk takers. In a switch called first to file versus first to invent, basically a lone wolf inventor can easily get ripped off. A large multinational only has to file a patent, it doesn't matter is they stole it from some poor schmuck in the process.
A non-disclosure agreement may prevent knowledge of the invention from being cited as prior art against an application of the original inventor, but it does not prevent the venture capitalist’s consultant from copying the invention and filing a patent application. It is wise for the original inventor to at least file a provisional patent application before talking to a venture capitalist, but here too, the capitalists may ask a lot of questions. If the consultant to the capitalist files a patent application, the consultant may win a first-to-file contest if the inventor did not file a provisional application or the consultant may file on a blocking patent application if the inventor answers too many questions. The small company would be forced to prove that the consultant’s patent application was derived from the venture capitalists who received their knowledge of the invention from the original inventor at that meeting. Since the Patent Office has only limited powers of discovery, the patent would likely issue to the copyist. The small company that needed the venture capital financing in the first place may be either driven out of business or forced to find other financing to sue the copyist in U.S. District Court, discover evidence of derivation and invalidate the copyist’s patent.
There is another aspect the IEEE, other groups representing actual inventors are not amplifying in their attempts to stop the destruction of U.S. patent law. That is money and costs of intellectual property. The above inventor is at the venture capitalist's office in the first place because they are broke and need funding. Patents are expensive so imagine if someone rips you off and it's now your burden to prove that happened, plus you're broke and have no funding. Why would the Obama administration be pushing to screw the pooch on patents, one of the strong suits of America? Who else but corporate lobbyists. Who cares if it kills the entrepreneur engine that made America great right?
Bottom line is now that the jobs crisis can no longer be denied, instead of getting real solutions to the economy, we get corporate and special interests wish lists. Politicians these days even have the gall to lie, straight faced, to the American people on what these agenda items do.
It's insult to injury, but regardless, don't expect jobs to appear anytime soon. Not with this politically corrupt train wreck.