In order to create the 12 million jobs Romney plans predicts there are six Imperatives for Washington to invoke. “In this present crisis, government is not the solution to our problems; government is the problem.” Mitt Romney makes the case that what was true in the early nineteen eighties is once again true nowadays. Although the government is able to lay out the total direction of the national economy, he states that the private sector must actually carry it out. Regarding the myriads of problems facing the economy both short and long term, Romney points out that the greatest priority for the federal government must be a campaign to create twelve million new private sector jobs by the year 2020. This is necessary in order to make places for a full one hundred thirty thousand new people looking for jobs every month, along with at least half of the displaced eight and a half million Americans who have lost their jobs in the Great Recession.
Mitt Romney claims that the first thing that critically needs to be done involves closing the spending and receipts shortfall. He states that the government is faced with two painful choices, since the debt is simply too great for the government to pay down or to sustain. Either they must make politically unpopular and excruciatingly painful cuts to all areas of the budgets to bring spending levels down to tax receipts equivalency, or they must increase the tax base to cover the levels of spending. Romney believes that this second way is far more likely. To significantly raise the tax base, there must be many more jobs, in the order of twelve million, in fact, created over the next ten years.
To accomplish this critical first point, Mitt Roney claims that they must stop the practice of blaming everyone else to concentrate on jobs, money, and revenue generation, developing a holistic Jobenomics philosophy and goal. He says that the ultimate cause of the housing crisis and resulting economic free fall came from the federal government’s manipulation of the market system in the first place. He reminds the reader that fully half of the Federal Reserve’s assets are now mortgage backed securities, which helped to cause the catastrophe. There is plenty of blame to go around, and a good portion of it rests with Washington.
The next thing that the Mitt Romney claims must happen is the development of a holistic Jobenomics philosophy and goal. He states that the government must step aside in favor of simply encouraging the private sector to create jobs and grow the economy. Their proper role lies in empowering businesses, in particular the owners and managers, so that they can be the leaders of the job recovery. Government is not able to do this on their own, as they have a poor track record of it, and do not like businesses much in the first place.
The previous point should be accomplished by promoting a cooperative environment between businesses and government. He says very wisely that as government threatens, blames, over-regulates, and over-taxes businesses and business leaders, the more timid such captains of industry get. Instead, he says that Washington has to develop a business-friendly environment which promotes such business persons to engage in greater levels of risk taking, recapitalizing, and hiring to begin new enterprises and expand existing ones.
To better accomplish this, Mitt Romney states that the government must begin by empowering starting up small businesses and those who are self-employed. He argues that the government usually favors larger corporations over smaller businesses historically. This is despite the fact that small businesses are over ninety-nine percent of the employing companies, and have created a full sixty-four percent of all net new jobs during the past fifteen years. A jobs stimulus package that actually rewards companies for hiring new employees is what is needed. In reality, the types of packages that Congress is debating now are so insignificant that they are hardly worth mentioning at all.
Finally, Mitt Romney believes that the government must begin promoting the jobenomics goals through daring programs and initiatives for working with local, county, state, and federal groups to create the 12 million jobs by 2020.