Obama, GOP ignore simple jobs program
With the White House unwilling to back oil or natural gas and a new strain of Republicans opposed to any kind of government involvement in industry, as many as 300,000 energy jobs go begging.
Look, it is one thing to try to block Keystone, the heavy crude pipeline from Canada that some people say could endanger key aquifers in the U.S. I get that. There is always going to be something endangered when you move energy from one place to another. Always. There are a lot of jobs on the line, but I can see where, if the big aquifers can be avoided, you have to try to do so.
But you and I know that with this president the jobs are going elsewhere and this pipeline is going to swing west to export oil to Asia, not come here. Hey, green is here to stay. I get that, too. I want the jobs and the North American energy here. But that's not what seems to be the imperative in a White House that is willing to lose billions to back any cockamamie solar project.
But it is another thing to work so hard to stop our own resources from coming in to play and block new jobs from being created simply on principle.
Last week I asked former Sen. Rick Santorum a question about whether he would provide some sort of federal incentives to get workers where they are needed to get the oil out of the ground in North Dakota. I asked because North Dakota is a real conundrum. The Bakken is producing 470,000 barrels a day, and I think that would double overnight if we had the number of people needed to man the rigs, could get the train lines, had the truck drivers and could extend the pipelines.
- Super Committee sets up for epic fail
- Could India go the way of Greece and Italy?
- What you won’t see in Wal-Mart’s earnings
It could, ultimately, be much more than that, as there is plenty of good work from Continental Resources (CLR) that shows there could be a Prudhoe Bay -- the largest discovery in 46 years -- under the state.
We just don't have enough people there to get it out of the ground. At the same time, we have millions of people in other states who are qualified for these jobs -- jobs that are going begging -- to build out this oil infrastructure. But they can't afford to get there or live there because there is no residential infrastructure. They need roads, schools, homes, apartments, hotels, restaurants and malls.
In other words, they need what we used to build when we were a growth country.
My question was designed to see whether Santorum would be willing to put some federal money out to get those workers there, because the job is too big for private industry.
The results of the answer were disappointing, if not predictable. He said as a senator he presided over the Marcellus boom in Pennsylvania and that didn't need any federal aid.
Now, you have to be respectful in these events, even as that doesn't come all that naturally to me. I wanted to say "Hey, chief, you missed the entire point. North Dakota, unlike Pennsylvania, has the lowest unemployment rate in the country. They didn't need any help in Pennsylvania, because there were so many idle workers."
I am simply saying that North Dakota is where the jobs are but the people aren't. Why not make us more energy-self-sufficient with easy-to-refine light Bakken crude (not a lot of impurities) and create as many as 300,000 jobs?
The answer, according to Santorum, is let the market figure it out.
The market can't. If it could, why would I be asking the question? To hear myself talk?
Anyway, neither the left nor the right is really focused on a simple precept: when you can produce cleaner energy here and create jobs at the same time, it is a win-win for both parties. The federal monies will go after truly shovel-ready projects that will advance the private sector's ability to put people to work in high paying jobs that will be provided by Halliburton (HAL), Clean Harbors (CLH), Continental Resources, Brigham Exploration (BEXP) (soon to bought), Schlumberger (SLB), Lufkin (LUFK), Continental (CTTAY), EOG (EOG), Hess (HES) and all sorts of construction companies.
We would have more, cleaner oil, more jobs and an infrastructure that would last. It's exactly what the mission of government has been in the past. It's what creates the growth that spurs the tax receipts that pay for themselves while making us more independent of foreign powers.
We know this president won't do it. We know that Santorum represents the new strain of the GOP, a sort of "abolish the government except for defense, as private industry will take care of everything."
To which I say: If that could only be the case. But some projects, like the Panama Canal, the interstate highway system and the Hoover Dam, to name three too-large-for-private-industry jobs created by the Republicans, are made for the federal government.
Just not under either of the current parties.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.
Right on, Cramer!!! The conclusion from this article is that neither political party wants to create jobs or decrease the Federal deficit, because what Cramer is talking about would do just that. Our polititians just want bleat 'jobs' , 'cut the budget' but they really will do nothing to accomplish these. They know that the electorate won't understand the difference.
But the average American will suffer for their ignorance and so will their children.
"abolish the government except for defense, as private industry will take care of everything."
Without government, we wouldn't have put a man on the moon. We wouldn't have the internet. We wouldn't have all of those wonderful satellites beaming data around the planet. We wouldn't have the interstate system. We wouldn't have split the atom. Look at all of the medical and agricultural advances that are discovered in public research universities funded by state and federal government!
The list goes on. Yes, I know the private sector was instrumental in the development of the above technologies, but the private sector was set to work by the government's need for innovation.
Vexed One, what we are witnessing is the combined results of greed, corruption, incompetence, and yes some purposeful acts.
We have been running trade deficits for decades and the end result is what can best be described as a National Bankruptcy Liquidation. Trade deficits have forced foreign entities to keep their revenues here in the USA to avoid currency reevaluations. So, they bought productive resources and now we are seeing creative ways to move wealth back home without triggering currency exchanges. Raw materials, scrap metal, energy, manufacturing, and intellectual property rights are all moving off shore.
Jobs are being created, but not at a rate sufficient to absorb new intents into the work place. We are still loosing ground to a downward facing demand driven spiral. Wages are stagnant in the face of relatively mild inflation, but continuing to loose ground none the less. Purchasing power is being lost with each spiral feeding the next spiral. The corporate propaganda is always trying to paint a rosy out look where there is none. The over 18 million unemployed and the under employed have no relief in sight.
Just do the math. If we started adding 250,000 jobs to non-farm payroll each month constantly it would take over 13 years to reabsorb the estimated 18 million currently unemployed.
(250,000 added per month – 135000 new entrants per month) x 12 months
This downward facing demand driven spiral is a growing monster and the number of jobs being created by oil exploration is but a pimple on the butt of this monster. This energy development boom is nothing but an excuse to blow tax payers money enriching the oil companies which are flush with cash already. We need to learn form our Alaska experiences building pipelines for export to Asia. Let the private sector build its own pipeline to export the oil wealth off shore.
Which brings me to the corruption that is congress; they have created a leverage system that profit maximizes their own insider trading deals. That is the main reason why Glass Steagall has not been reinstated. That is the main reason why the commodity Futures Modernization Act of 2000 has not been repealed. That is the main reason that the leverage ratios remain too high. That is the main reason people are occupying parks in almost every major city. This nation is misallocating capital resources on speculation (a zero sum game) to benefit a few corrupt inside traders who have given themselves an exemption from the insider trading laws. These criminals that call themselves congress people are lining there pockets ignoring the best interests of this country. As it fails it is just another shorting opportunity for the well connected insider. We need to get rid of every one of them.
The congressman trying to liquidate federal land in Los Angeles knowing full well that it will triple in value once the new foot ball stadium is built should be ashamed of himself.
Some of the posts I have read seem to imply that there is a specific and directed plan to make us all financially weak, while others imply that our current woes are simply a direct result of the incompetence of the past. Can anyone here give me an intellegent or decisive answer on what the real deal is?
If jobs are not being created, the housing market is being left where it's at, and big money oppurtunities are being handed to foreign competition because of a lack of the will to act on them (as part of some sinister 'home grown' plan); what is the purpose of making the U.S. and it's citizens financially weak?
Is it to level the playing field between the poor and middle class? The idea of re-distributing wealth (one I do not agree with) does not seem to hold any clout here unless it is to make the middle class poor as well.
Is it a tool being used to force Americans into jobs they would not normally or could not normally afford to take? Sounds like immagration control to me, although I do not agree with this specific 'means to an end' scenario.
Or is this all just the aftermath of a greedy (but intellegent) upper classthat has simply chosen to invest where the best profits are going to be made? Honestly?! If I had several million to invest (now or 10 years ago), why would I invest it in a company that produces steel here? Arn't the real profits being made in China?
Please don't get me wrong. I am all for American Industry, right here at home (even if it means taking a few losses) and if I had the power to make a difference 'here' I would. I'm simply curious to know what the truth is.
I don't see the problem with our government... Our politicians are creating jobs in DC just as fast as they can! The more people they can add to their own payrolls...the more votes they can control.
Oil... we won't need it much longer - as more and more people lose their jobs and file for bankruptcy...they will have less need/money to drive around...
Oh, and build more houses...silly idea... we just went thru that with the Feds help and look at the mess it created. Perhaps, we should be burning down several million homes instead of trying to sell them to the people that will be losing their jobs next year?
Now these are simple assumptions to the mess we are in... Cramer seems to have missed the easy answers!
Of course Cramer is right. We have a natural resource that could benefit the whole country and employ people from all over the country. We should have had the forsight to do this several years ago, none of this info is so new. But now its common knowledge and still none of the politicians seem to get it. This should be a national priority, like the Manhattan project. Its just as much a question of national security as it is economics. But it seems to be only one of politics to the politicians.
We must develop our own resouces and do whatever we have to do to do that, as a country. Countries build infastructure. Roads, bridges, pipelines across state lines. We dont ask investors to do that ordinarily although some public private partnerships look promising here. The politicians are really fighting over who controls the money which means whose friends get it and what contributions are bought. The money should be earmarked for specific projects and given to State infastructure banks, not doled out piecemeal by the Feds as a control device. Thats the fight. Not what needs to be developed or why. They are really just fighting over how to get a piece.
. And schools are a state responsibility, not a federal one. The policy that all children must get an education is one thing but how is up to the state and the local community and spending money to make them green at the expense of other priorities is assinine.
Where is this huge oil field in North Dakota that Cramer is talking about? The one that produces light crude oil. How much oil are we talking about?
Copyright © 2014 Microsoft. All rights reserved.
The company is scrambling to protect its equities arm, which could face declining volume and revenue as competitors close the gap.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.