Karen Mills on US Job Creation (Fortune)

Karen Mills128

Karen Mills

 

Speaking to the fact that small businesses and startups have historically been behind the bulk of the jobs in the U.S., Karen Mills writes for Fortune about three ways to reignite job creation.

“Up to now, Washington’s focus has been on macro-economic strategies, like deficit reduction,” writes Mills. “But it’s not easing the anxiety felt by Americans because the root of that anxiety is jobs or lack thereof.” Read the article.

Mills, wife of President Barry Mills, was a member of President Obama’s Cabinet from 2009 to 2013, serving as Administrator of the U.S. Small Business Administration.  She now serves as a senior fellow at both the Harvard Business School and the Harvard Kennedy School’s Mossavar-Rahmani Center for Business and Government, focusing her attention on U.S. competitiveness, entrepreneurship, and innovation. She was a resident fellow at Harvard’s Institute of Politics in fall 2013.

Comments

  1. Robert Kelly says:

    Jobs are created from increased demand. Demand is created by spending. Spending is created from income or credit. Since credit bubbled and burst in 2007-8, demand must come from spending. Spending can come from non-government or government. Government spending is politically impossible in the current Congress. Non- government spending is tenuous at best in this continuing deleveraging environment. Consumer spending has been unsteady and business investment is on hold until demand picks up.
    Our current representative democracy has no desire to help Main St. Big business and Wall St. have firm control over our government. You can suggest public/private partnerships all you want, but until we have a complete turnover of Congress- with representation of Main St.- we will continue to muddle through at a snails pace. Jobs will come very slowly until spending via credit can be re-established. Government spending on infrastructure and green tech and education, etc. is the answer. But the powers that be are not interested. They are more interested in privatization and economic rent than improving the economy for the masses.
    Note- Government spending is not revenue constrained. It is inflation constrained. And we have no inflation and a large output gap. Deficits are inflationary at full capacity and full employment. Deficits are good with high unemployment and reduced output. Deficit reduction in our current economy is self defeating. See Europe. See Japan. Too many $US are sitting in pension,saving and retirement funds where they are not spent Not enough $US are in the pockets of consumers, who will spend them. It’s all about Main St. not Wall St.

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