U.S. job creation may have been stagnant in August, but partner company Beyond.com reports that in spite of obvious challenges, there has been strong hiring activity in some industries. Beyond.com’s Employment Data Report analyzes those key challenges for the job market, but also points to some positive trends.
However, there is still a real crisis in creating new employment opportunities in this country. It’s not new news, but this scenario seems to be stagnant, if not worsening. The current administration is seeking to do even more, and solve the problem with greater government influence in the creation of job specific funding initiatives – things such as infrastructure rebuilding. Last week, President Obama provided a roadmap for job creation in his September 8 speech. Not much new to report as it relates to his position on a stimulus to be paid for part in certain spending reductions, and in part through some direct and indirect tax increases.
- Presidential hopeful Mitt Romney previewed 59 ideas for job creation in a USA Today op-ed piece.
- The U.S. Chamber of Commerce set forth its job creation plan in a letter to the President on Labor Day, including initiatives such as a corporate capital gain tax holiday, expanded free trade, and investment in infrastructure.
- Another Republican Presidential hopeful, Jon Huntsman, proposed a restructured tax rate along with other lesser regulatory initiatives.
Jobs, jobs, jobs. All of these ideas have some merit and should be explored. The solution will be in a combination of efforts and ideas that can make this country more competitive and structurally sound to compete in the global economy. But I think we are missing some key ingredients, including those related to the capital necessary to sustain growth.
Here are my five key ideas which can help the capital community assist Washington, and more importantly, the citizens seeking employment:
- Lesser regulation on venture capital and private equity providers so that more capital can be used for growing companies rather than meeting unneeded regulatory requirements.
- Tax reduction or elimination on gains related to profits generated on risk capital.
- Tax credits to businesses and individuals for new skills training and education.
- A realistic regulatory approval process for matters related to new health services, diagnostics, and treatment.
- A shared vision and execution of strategies that truly foster innovation in the areas of technology, life sciences, alternative energies, and education.
Rocket science is not needed. What is needed is a practical understanding of the real issues and actions that can be implemented in a cost-effective manner to leverage the ever increasing amount of capital available in the market. Businesses are scared to invest due to economic uncertainty. I can’t seem to blame them in light of the conflicting points of views offered in Washington.