Job Creation Must Be Job One
This week’s newsletter will discuss the importance of staying focused on job creation as well as May’s Charity of the Month.
I would like to focus first, however, on the momentous news of the week.
The killing of Osama bin Laden is a significant victory in the long struggle between radical
Islamists and modern civilization.
This victory is a tribute to the patient endurance of American justice. I commend both President George W. Bush who led the campaign against our enemies through seven long years and President Obama who continued and intensified the campaign in both Afghanistan and Pakistan.
We should remember to thank those who made this possible. Without the courage and professionalism of our men and women in uniform and in the intelligence services, this victory would not have been achieved.
This victory is only a milestone in a long war. We must also recognize the long struggle ahead. Radical Islamism did not start with bin Laden and it will not end with his death. This is the 32nd year since the Iranian dictatorship seized our diplomats illegally and held them hostage for 444 days. It has been 28 years since Iranian-supported terrorists killed 241 servicemen in Beirut in 1983.
As long as there are schools teaching children to hate; as long as there are state-supported terrorist systems; as long as several countries actively recruit children to be suicide bombers; this war will continue.
The world is a better place without Osama bin Laden, but his just demise cannot erase the loss and suffering of the victims, their families and friends. So while we celebrate this victory, we should take time to remember and pray for all those who have sacrificed.
Focus on Job Creation
Washington is focused on the wrong issues.
The number one problem in America is the lack of economic growth required to create jobs.
Americans are in pain from unemployment, the collapse of housing values, and the rising cost of gasoline and other commodities.
It is impossible to balance the budget at 8 or 9 % unemployment. If we add those who are underemployed or who have dropped out of the job market, this more inclusive unemployment rate (U-6) is nearly 16%. Job creation is the most important step to balancing the budget, so we can move the millions of people consuming tax revenue off unemployment and welfare into jobs where they are being productive and paying taxes.
The March report that 42.1% of African American teenagers were unemployed is a warning about a social crisis of enormous pain and destruction. When nearly half of a group of people cannot find work, there will be tremendous social and personal costs. Some of our greatest cities are becoming ghost towns as economic decay and joblessness destroy the very fabric of the community.
The pain of unemployment is being compounded by inflation. Even those with jobs increasingly can’t afford to fill up the tank of their car or truck. So people are in pain as earners and as customers.
The leading cause of the rising cost of gasoline is a destructive Federal Reserve System. The Bernanke policy of printing money is setting the stage for massive inflation. Cheap dollars become expensive oil, gold, silver and other commodities. Expensive oil translates into expensive food since energy is vital to food production, processing and distribution.
We have been here before. In the late 1970’s, President Jimmy Carter’s destructive policies led to stagflation.
Stagflation was the combination of economic decline with inflation.
Traditional economists did not know what to do.
Every time they stimulated the economy by increasing the money supply it led to rising interest rates and inflation. The rising interest rates then cut off economic growth and pushed Americans back into unemployment.
Congressman Jack Kemp, economist Art Laffer and Wall Street Journal writer Jude Wanniski developed a model of “supply side” economics which mopped up the inflation with a combination of tax cuts, deregulation, constant reinforcement of entrepreneurs and investors and a bold change in Federal Reserve policy to promote a stable dollar.
Washington today must undertake five parallel policies designed to create jobs, put Americans back to work, rebuild the housing market and cut off inflation before it grows out of control:
1. Pass a powerful tax cut and regulatory reform package designed to launch a decade of job creation and economic growth;
2. Pass an American energy program that creates jobs here at home. An American energy program would not just create jobs in the energy sector. Lowering the cost of gasoline, heating oil, and electricity would stimulate job creation throughout the economy;
3. Repeal Obamacare before it does permanent damage to our health system and economy;
4. Bring the Federal Reserve under control by insisting on a sound dollar policy and by exposing and investigating the billions in secret deals the Fed used to shift money to giant foreign and American banks;
5. Cut spending decisively to create the fiscal space for a pro-growth economic policy.
As the Congress approaches the debt ceiling debate and other future confrontations with the Obama Administration, it must make sure job creation is the number one focus.
America only works when Americans are working. That is the heart of our current crisis.
May Charity of the Month: Freedom Alliance
by Newt and Callista Gingrich
In observance of Military Appreciation Month, we would like to recognize Freedom Alliance – an organization committed to honoring the service and sacrifices of our men and women in uniform and supporting the family members who stand behind them.
Founded in 1990 by Marine Corps Lieutenant Colonel Oliver North, the organization has worked
arduously over the last twenty years to further their mission to “advance the American heritage of freedom by honoring and encouraging military service, defending the sovereignty of the United States and promoting a strong national defense.”
Through four main initiatives – Support Our Troops Program, Military Leadership Academy, Public Policy, and Scholarship Fund – Freedom Alliance educates the public, especially young Americans, on the importance of citizenship and the importance of American liberty, as well as providing tangible support to our troops and their families. Furthermore, through various public policy initiatives, Freedom Alliance promotes a strong national defense and the protection of American sovereignty.
The Support Our Troops Program provides continual outreach throughout the year to America’s servicemen and women and their families. The program hosts various events and provides financial support to members of the Armed Forces who have been wounded in combat or who are currently serving on the frontlines. Recently, Freedom Alliance hosted their first Poppy’s Wish Heroes Vacation, which gave two wounded warriors and their families the opportunity to travel to Tampa, Florida for a dream vacation, all expenses paid.
Celebrating its 10th year, the Military Leadership Academy (MLA) continues to influence high school students, developing leadership skills and strengthening character. The Academy provides 14-18 year old students with a summer camp experience, grounded in military discipline, that teaches the importance of physical fitness, service, and teamwork. The Academy is grounded in the values of courage, integrity, dependability, responsibility, and respect – developing selfless leaders and encouraging high school students to serve their country.
Freedom Alliance’s Scholarship Fund supports the children of our military heroes who have been killed in combat or who have been permanently disabled in an operational mission or training accident. Not only does the Scholarship Fund financially support the children of our military heroes, it reiterates to those children – and the nation as a whole – how invaluable their parents’ service was, encouraging their children to pursue an education and impact the world in their own way. Over the years Freedom Alliance has awarded over $4 million dollars in scholarships.
In recognition of Military Appreciation Month, please join us in donating to Freedom Alliance. Together we can honor the sacrifices our troops have made in the struggle to preserve American liberty and freedom. Your financial support will directly assist our troops and their families, who selflessly support the mission of their loved ones from the home front.
Newt and Callista Gingrich
P.S. Our new documentary, A City Upon A Hill: The Spirit of American Exceptionlism, premiered on April 29 is now available. The movie explores the concept of American Exceptionalism from its origin to the present day. Visit CityUponAHill.com to watch the trailer and learn more.