Obama’s Rush to the Economic Right: Will Sacramento Follow Suit?

Taking in President Obama’s state of the Union speech while frying patty melts for his kids, one thing struck the Blue Dog big time: Obama came out of the gates running for the center. In fact, his momentum seemed to carry him across the line and into Republican territory on jobs and the economy. Obamas’s most surprising, and apparently sincere, admission that business is still the engine that drives the economy was refreshing and even startling. Good for him. And let’s hope the Republicans find it in themselves to work with him instead of trying to sabotage the country for political gain in November.

And Obama should get credit for stabilizing the economy and starting to clean up the crap left by the previous Administrations. But his claims of jobs creation, however, rang a bit hollow. After all, the avalanche of recovery funds have chiefly been absorbed in protecting public sector jobs. In fact, the Stimulus Project suggests as much as 75 percent of the mega funds have gone to entitlements and government works.

Saving taxpayer-funded jobs ain’t the same thing as creating jobs. Government may employ people, but it doesn’t create the underlying wealth and new revenue. It absorbs, redistributes and transfers wealth. And yes, it plays a critical role in curbing private-sector abuse. This is all the subject of a whole different conversation. The point here is that government jobs are the offspring of taxpayers and especially the loins of business.

One wonders if the liberals in Sacramento heard Obama. Or were they too busy watching Nancy Pelosi and Joe Binden grin ear to ear as if they had just sipped the Kool-Aid or were in on the same joke?  One worries if the California Left really does get it. Here’s a classic example: A few months ago, there was a “Jobs Summit” held in Sacramento to explore  ways to create jobs. According the press account, there was an array of traditional Democratic stakeholders — labor, public employees unions, government, academics, think tanks and the like. But guess what? No mention of the economic engine Obama talked about. Apparently business wasn’t important enough to have a seat at the table. Never mind business is the table, as Obama pointed out in his speech.

We are in big trouble if this “summit” mentality mirrors the current mindset in the Capitol, a notorious Slaughterhouse for pro-business and private sector job growth initiatives. Growing business is serious business, and is getting more urgent. Consider that California’s nearly 13 percent unemployment rate is nearly as high (about 2 points less) than Michigan, which has been decimated by the gasping auto industry.

Obama called on policy grounded in “common sense”  and post partisanship. Whether this can happen in DC is anyone’s guess. Here in Sacramento, the stakes are higher and the divisions perhaps even greater in terms partisan rancor.

Nonetheless, let’s think big, and positively. So here’s a call — albeit a naive one –  from the millions of silent Centrists who would love to see the following from the California Legislature:

(1) Make private sector job creation its number one priority. And that doesn’t mean hiding behind the long-term dream of  “green job creation” at the same time regulations and laws are passed to ban products, shut down what manufacturing is left, hamstring farmers, mandate bureaucratic reporting of information that is already readily available just to curry favor with special interests and activists groups, etc.

(2) Steinberg and Perez should each reach across the aisle and name a moderate, respected Republican in each house as a Job Czar, who would serve as advisors on job-related legislation.

(3)  Run every bill through an economic filter with analysis from an independent third-party group of economists — as well as from Capitol staff and their bosses.

(4) Create a legislative Siberia for any bill that creates a new program or bureaucracy.   State office buildings already are littered with programs that don’t have adequate funding.

The Blue Dog likes to start from the ideal and work backwards, lowering expectations as we go. So let’s think big. Sacramento Dems – take a page from the Democrat in Chief. Create an environment friendly for jobs growth and you’ll ultimately have plenty of tax revenue to address the many ominous ills in our state.