How are jobs really created? Would a business hire a new employee because of a $4,000 credit given by the government? I don’t think so.
As a small-business owner, I only hire when I really need a helping hand, not because of some kind of credit.
Moreover, many industries should not be encouraged to hire anyway. As technology advances, as consumer behavior changes, and as the world increasingly gets smaller, many of the jobs, such as manufacturing jobs, will simply not return here the U.S. These jobs can be done more efficiently in Third World countries. That is how you and I are able to purchase low-priced goodies from Walmart.
How can a job be really created in U.S.? The real job growth comes from people who start their own businesses — in other words, entrepreneurs. Yes, the historical understanding was that 90 percent of them would fail in one year. However, new data indicated that only about 40 percent did. That is a whopping improvement from the previous assumption.
Out of this 40 percent, perhaps 10 percent of them will eventually hire somebody down the load. Even if they don’t hire somebody else, at least they have hired themselves and have effectively taken themselves out the job market. Moreover, 1 percent of the 40 percent may become new Taco Bells, or In-N-Outs, or Googles. That is the kind of job creation we really need.
As for the city of Tracy, we have relied on real estate taxes to meet our financial needs for way too long. Given the current real estate market and economy, that amount of tax dollars may not come back for a long time.
What is our best solution? I say to encourage organic growth. In other words, we need to create an environment in which an entrepreneur can thrive.
How do we create such an environment? For one thing, Tracy can eliminate business taxes for new start-ups for two years. One may argue the city of Tracy is out of money, it desperately needs additional revenue to make up the shortfall. Therefore, Tracy can’t give out such an incentive. Well, Tracy can’t collect the money if there isn’t a business starting here. On the other hand, if more businesses open doors in Tracy, it certainly will create jobs down the road.
We need a lot more restaurants, we need service businesses. We need a main street that features many ethnic cuisines — why can’t our downtown become such an attraction?
Livermore has done it, so should Tracy.