1,OOO,OOO NEW PRIVATE SECTOR JOBS IN FLORIDA WITHOUT SUBSIDIES, TAX BREAKS OR GIVEAWAY – PART TWO Read more at http://investmentwatchblog.com/1oooooo-new-private-sector-jobs-in-florida-without-subsidies-tax-breaks-or-giveaway-part-two/#U0kbWF3v02439zQt.99

by Farid A. Khavari

Khavari Job Creation Plan, Part 2.

As governor, here’s exactly how I will create 1,000,000 good middle class jobs in Florida, without subsidies, tax incentives or other corporate socialism. It’s simple.

A governor with an economic plan is in a unique position to create jobs in Florida without subsidies, “stimulus plans”, or other forms of corporate socialism.  When you see how this goes, you will understand that it will work like magic, and you will wonder why every governor doesn’t do it.  That’s because this is common sense economics, not politics. And it involves working for the people of Florida, not the special interests.

You have heard about “Supply” and “Demand”.  Here is why corporate socialism and stimulus plans fail to create jobs:  they focus on supply. For example, Solyndra blew $535 million to create and then lose less than 2,000 jobs, and our grandchildren will still be paying the interest on that. They made a great factory to produce something that apparently no one wanted. Oops!

 

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Anyone but a politician can understand that a business will hire people when there is a demand for its products and services, and it will lay off people when there is no demand.  What I will do as governor, and it costs virtually nothing to do, is organizedemand.

As governor, I will represent all 19 million plus Floridians.  While we are all individuals, we have many common interests and acting together we are a huge economic force because we are a huge market. By representing all Floridians, a governor is in a unique position to drive the economy by organizing demand.   Here is one simple example.

Here’s a sample phone call from the governor’s office in January, 2015.

Governor Khavari:   Hey, Solar Panel Manufacturer, we have started a new program to solarize Florida. We have about 10 million homes, and we figure that 5,000,000 of them will get solar water heaters over the next few years. Our program is voluntary but we are promoting it because it can save people five times what it costs and we are all about reducing costs.  We are arranging special pricing with manufacturers so we can have the best deal possible for our people. We have arranged special financing so that people can get solar and pay for it through the energy savings.  We have licensed qualified plumbers and installers all over the state getting special training seminars. We need product.

Solar Panel Manufacturer:  That sounds interesting.

Governor Khavari:   We assure the manufacturers that a certain amount of their products will be sold in Florida at a pre-determined wholesale price, if they make them in Florida and hire Floridians. The pricing allows you to pay middle class wages and benefits and we need that, too.  Can you make 100,000 solar collectors per year in Florida?  How many can you promise us?  And how many jobs?

Solar Panel Manufacturer:   We can only supply 50,000 in the first year but 100,000 in the second year and onward.  We would need to hire 200 people the first year, and say 200 more the second year.  I know Florida has great roads, railroads, and ports so I’m sure we’ll find a location or two right away.  If we can sell that quantity at our current wholesale prices, we can pay better than the average wage; say around $44,000 and good benefits.

Governor Khavari:  Show up at my office on Tuesday and bring a pen.  We want this up and running within 90 days.  Our staff has arranged for representatives from cities and counties around Florida to meet with you and other manufacturers here so you can see what location makes sense for you.  One condition though, you can’t accept local tax benefits or handouts.

Solar Panel Manufacturer:   You don’t get jobs with handouts, sir; you get jobs when there is demand. What time on Tuesday?

Repeat this phone call to a few dozen manufacturers of various components of solar water heaters, and at the end of the day you have 3,000 manufacturing jobs which will grow to 7,000 within two years.  That’s nice for a number of areas who get these jobs.  But the real benefit is that this program creates over 30,000 MORE equally-well paying jobs all throughout Floridabecause every one of those systems needs to be sold, installed and maintained.

I described “SuperJobs” in the last post.  A SuperJob is a job which creates more wealth than an ordinary job, because the products or services pay for themselves and then provide permanent cost savings to the customer.  In the case of a solar water heater at the right price, the product pays for itself with energy savings, and then goes on to pay for itself four or five times over time.  Even though our “Solarize Florida” is voluntary, we will need a lottery to decide who gets these systems because demand will outstrip supply for a year or two.

We can have over 33,000 good jobs just from this little deal.  Now there is something else to consider:  33,000 good middle class jobs represent almost $2 billion per year of income. That translates into at least $10 billion per year in economic activity as that income circulates.  This added $10 billion in economic activity will create 100,000 more jobs in Florida within two years.  And those 100,000 jobs will create more. And so on.

This is just one small example of how I will create 1,000,000 good middle class jobs in Florida.  You can see how simple it is.  The special financing costs taxpayers nothing, either from local banks who want to enjoy some of the state’s banking deposits, or from my proposed SuperBank.  The manufacturers pay their own way and reap the benefits of a strong market.  They even pay for the training seminars.  The customers get a great product at the lowest possible prices. The solar companies and plumbers make a fair profit while paying the middle class wages and benefits required to participate in our program.

Next time I will explain how we can create a much larger number of SuperJobs in Florida and save billions in the state’s budget, too.

Rick Scott has promised to spend $100 million to win another term as chief lapdog of big money special interests.  (Who is paying for that, and why?) Charlie Crist has already raised millions from big donors.  There is only one way to defeat big money and the special interests pulling the strings in Florida, and that is by using social media to get the message out to every voter.  Please pass these posts to everyone you know and get the word out!

If you don’t need a job, you certainly know someone who does.  Stand up to big money! Pass it on!

Khavari for Governor, Florida 2014. A million good jobs.  Really.

 

Farid Khavari, Ph.D., economist is a candidate for Florida Governor 2014.

 

Read more at http://investmentwatchblog.com/1oooooo-new-private-sector-jobs-in-florida-without-subsidies-tax-breaks-or-giveaway-part-two/#U0kbWF3v02439zQt.99

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