Analysis of Bill Clinton's 14 Proposals to Create Jobs

Former President Bill Clinton described 14 ways to create jobs in a June 2011 Newsweek article. Here's a summary of the most important points, with links to articles that give you more background information. Whether you think these ideas would work or not, it's what Congress and the President should be discussing. Job creation is needed to put 14 million Americans back to work, creating the demand for goods and services needed to get the economy growing faster.

Here's 5 Ways Hillary Clinton Would Create Jobs.

Streamline Federal Approval Process

create construction jobs
Photo: Justin Sullivan/Getty Images

Obama's Economic Stimulus Plan allocated $275 billion to save or create between 600,000 - 2.3 million jobs. These contracts were awarded to "shovel ready" projects that were already approved and ready to begin construction. Clinton argues that the approval process for any project that creates jobs and doesn't harm the environment should be sped up.

Cash Incentive for New Jobs

Fuel Cell Car (Photo: Getty Images)

New business start-ups need cash, which is why tax cuts don't help them. Since small businesses create 65% of all new jobs, they are critical in reducing unemployment. The Economic Stimulus Plan gave cash incentives in lieu of tax credits to new businesses for every new employee hired, and every green job created. This was discontinued when the Bush tax cuts were extended in 2010. It should be reinstated. Why? The incentive increased the U.S. market share for hybrid car batteries from 2% to 20%. It works.

Pay Businesses to Train Workers to Fill Vacancies

Many unemployed workers need technical skills.(Photo: Koichi Kamashida/Getty Images)

There are 3 million job vacancies because businesses can't find workers who have the skills to fill them. Most unemployed people don't have the money to get training for today's jobs.The Federal government could pay the businesses to train the workers to fill those specific jobs. Businesses don't have to pay Social Security or benefits until the worker is trained and hired. This would fill those jobs faster, increase the competitiveness of the U.S. by updating workers with needed skills.

Retrofit Buildings to Be More Energy Efficient

(Photo: Robert Girous/Getty Images)

The Federal government could reward companies or utilities to train workers to retrofit buildings to increase energy efficiency. This would create jobs, train workers with needed skills, and decrease reliance on foreign oil. In addition, it would redirect savings toward demand-producing goods and services. Clinton also suggests the U.S. ratify the Kyoto Protocol, which mandates a reduction in greenhouse gases. Countries that ratified it are outperforming the U.S. economically.

Paint Black Roofs White

White roofs reflect light and heat, saving energy.(Photo: Don Kravitz/Getty Images)

Get the cities to pay workers to paint black tar roofs white. This would put construction workers, who have been hit the hardest, back to work. It would also save 20% in energy, which could be spent on goods and services other than generating electricity, which increases fuel and oil prices. Clinton admits the cities are cash-strapped themselves right now. I see no reason why the utilities couldn't include this as one of their programs.

Federal Loan Guarantees for Bank Lending

Clinton calls this the "Just Say Yes" program. He suggests setting aside $15 billion of the TARP funds to guarantee loans made by banks for energy retrofits. Banks are sitting on $2 trillion in funds they are afraid to lend out. A loan guarantee program, like the SBA  loans but more conservative, might get this money back in circulation. Loan guarantees of $15 billion could encourage $150 billion in loans, and create 1 million jobs.

The Other 8 Proposals

Many of Clinton's other eight points were less specific. They included reviewing with the states more ideas on what they could do to encourage green jobs. Some points merely gave his opinion, such as how the Federal debt means the U.S. can no longer enforce trade agreements with countries that we owe money to. He also explains why it seemed like TARP didn't work when it really did. To read the entire article, see "It's Still the Economy, Stupid," June 2011, Newsweek.