The Best Jobs Plan: Think Different
Guest post by Dave Reiss.
Who’s the best jobs creator?
(a) Thomas Edison
(b) Steve Jobs
(c) Federal Government
A number of articles in last week’s Wall Street Journal revealed a profound and fundamental truth regarding our economy and the most effective way of creating jobs. One article traced the rate of home ownership over time and pointed out that home ownership is now at the lowest level since the depression. There is a direct correlation with this sad fact and the government’s decision and resultant policies determining that everyone in America should own a home regardless of their ability to afford one. Their attempt to manipulate the housing market with irrational regulations pertaining to the qualifications for mortgage lending left the country reeling economically on every level.
The next article had to do with Steve Jobs and his remarkable journey with Apple computer. In this editorial, the Wall Street Journal traveled through history to identify an innovator who could be compared to Steve Jobs. They chose Thomas Edison and his invention of the phonograph, motion picture camera and the light bulb, and highlighted the “unimaginable” amount of jobs created by these innovations. It was pointed out that when the economy was tanking after 9/11, Apple computer was surging in growth and revenues around Jobs’ creation of the iPod. He disrupted markets by changing the way people could purchase music, and continued to re-imagine mobile devices with the iPhone. He went on to create new electronic consumer product markets with the iPad, disrupting the PC marketplace – no small achievement through his unrelenting creative and innovative passions .
The Jobs and Jobs WSJ article shares this reality: “At the risk of dragging Washington into the thoughts on the legacy of Steve Jobs*, let it also be noted that President Obama spent the better part of his hour-long news conference yesterday moaning about Washington’s ‘failure’ to bring his job-creation bill to life. The bill’s details aside, it is hard not to notice the differing results of the Washington model of creating jobs and the Jobs model of creating jobs. Perhaps Washington should think different.”
*It should be noted that Steve Jobs made Apple the most valuable company in the world without any help from Washington DC. He regularly turned down invitations by various officials in Washington, choosing instead to spend his time thinking about the next big thing that Apple should be producing.
Let us know your thoughts on the best way to get America back to work.
Dave Reiss
By John Geffel on October 12th, 2011
Wow, that’s a BIG question – how best to get the USA back to work?
Keying off your blog I believe the root of all business is customer value (no big surprise coming from me). The whole tech industry is a recent (last 25 years) example of new/improved customer value. Hundreds of thousands of jobs (my own included) have come out of this new value arena. Whole new product categories have been created.
However, it’s easy to think that “government wasn’t involved”. If we think about the current internet – guess where that started, DARPA – government (not Al Gore.)
Also, new/improved customer value requires customers who are at a point where they can benefit from the new value and purchase it. Governments that ensure orderly markets, a secure and educated population and good infrastructure greatly increase the ability for business growth and jobs.
Fundamentally, job growth goes hand-in-hand with consumer demand growth. We are, for a lot of complex reasons way beyond my pay-grade struggling with a demand problem. Is government the main problem? I don’t personally think so – it’s a contributor when it fails to provide the basic essentials for growth that I mentioned above.
Which takes me then (rather circular I know) the “law of unintended consequences” applied my comments about the growth in the tech industry. We are now starting to see the consequences of pervasive technology enablement – many jobs just aren’t needed anymore. We’ve automated them out of existence. And off-shored many others. Oops.
This is where it gets tricky: How do you grow demand – through jobs. How do you grow jobs – through demand. They are mutually reinforcing and mutually destructive. New value is the key to positive reinforcement of the cycle.
I believe much of that new value is in small to medium sized businesses and in “garages” where Jobs, Hewlett & Packard, Gates and many others started. They’re out there working on the Next Big Value Industry… not sure I answered your question very well!!
By Everett on October 12th, 2011
John,
Keying off your last statement “I believe much of that new value is in small to medium sized businesses and in “garages” where Jobs, Hewlett & Packard, Gates and many others started;” imagine if all the “Occupy” groups, said – “wait a second; we’re all gathered in one place; most of us have at least an ounce of creative thought to contribute; let’s have a startup weekend (http://startupweekend.org)!”
Everett