ONE MILLION NEW PRIVATE SECTOR JOBS IN FLORIDA, PART ONE
KHAVARI: “WE CAN CREATE 1,000,000 NEW PRIVATE SECTOR JOBS IN FLORIDA WITHOUT SUBSIDIES, TAX BREAKS OR GIVEAWAYS!”
Farid A. Khavari
We can create 1,000,000 new private sector jobs in Florida without subsidies, tax breaks or giveaways. And those jobs will be real middle class jobs, not just part-time minimum wage jobs. Many will be “SuperJobs”. As governor, here’s how I will do it.
Starting today, in these posts I will describe exactly how as governor I will create 1,000,000 new private sector middle class jobs in Florida. First, I must explain what kind of jobs we need and why some jobs are better than others (it’s not just about the pay), and why some jobs are “SuperJobs”. Then I will explain exactly how a governor can create these jobs without subsidies, tax breaks or giveaways. Finally, I will describe specific jobs and how we will create them in Florida.
We need full time middle class jobs in Florida. I define a middle class job as a secure job with sufficient pay and benefits to enable the worker to buy a house as well as vehicles and the other necessities of life, raise a family, and save for the future as well. That seems obvious enough, right?
Here is some common sense you have never heard from a politician or an economist: there is a difference between a wealth-creating job, and a wealth-consuming job—and we need more of the first kind!
You don’t need to be an economist to understand the difference. Building or making things creates wealth in an economy. So jobs in construction and manufacturing, for example, and all of the jobs related to those activities, create wealth. Making money by buying and selling stocks, and most other financial activities, do not create wealth. At best, they simply transfer existing wealth from one person to another. At worst, they use up capital that could generate wealth-creating activities. Many things consume wealth: interest, insurance, energy, health care, social costs, and so on. Of course these activities are necessary in any economy.
So what we need in our economy is to create more wealth than we consume, just like a person needs to bring home more money than it costs to live. This is so simple that even a politician could understand it.
But everyone (at least 99% of us) knows that costs of everything rise faster than incomes. Insurance, interest, health care, energy, homes, food, cars, clothing; the cost of practically everything is rising faster and faster. You don’t need to be an economist to understand that sooner or later, costs overtake your income, and the result is poverty and destitution. A major part of my Economic Plan for Florida addresses the many ways to increase wealth and economic security by reducing costs, not just for government, but for everyone.
The reason is simple: permanently reducing costs creates far more wealth for a person—and an economy– than simply increasing pay. And that leads us to the concept of “SuperJobs”. SuperJobs create more wealth than any other kind of jobs, because they provide products and services that pay for themselves and permanently reduce costs for the customer.
One example of SuperJobs is manufacturing and installing solar energy systems. The products pay for themselves in a few years through energy savings, and then the savings continue to accumulate. The result is much more wealth creation for the economy—and the customer—than other kinds of manufacturing jobs. Making and installing products that hurricane-proof houses while reducing energy costs is another kind of SuperJob. The products pay for themselves in a few years by savings on energy and insurance, and then reward the customer with permanent savings for decades to come.
There are many other opportunities for SuperJobs in Florida, many in fields that are not so obvious. One example is jobs that improve health care quality while reducing costs. More about this in future posts.
Governor Rick Scott has said “Any job is a welcome job.” And he wants so badly to welcome new jobs to Florida that he committed $266,000,000 in tax breaks and incentives to try to get 45,258 new jobs. So far, 1,939 of those jobs have materialized. This is just another of the endless examples of subsidies, “stimulus funds” and other giveaways (corporate socialism) failing to create jobs. And guess where that $266,000,000 will come from.
Next time, I will explain exactly how as governor I will create a million good middle class jobs in Florida, without subsidies or giveaways. It’s not magic; it’s simply common sense economics.
In future posts I will describe the exact jobs we will create and how we can make Florida prosperous and recession-proof.
Farid Khavari, Ph.D., economist, is a candidate for Florida Governor 2014.