How the Democrats Forced Bush to Create Thousands of Jobs in 2004
by Anthony Watson (c) 2004
October 15, 2004

George W. Bush and the Republicans have been trumpeting the job gains that have finally begun to happen in 2004 as proof that the Bush Administration's economic policies are working. The reality is that the Democrats and Big Labor are responsible for thousands of jobs that were created in 2004. The Republicans and particularly George W. Bush were dragged kicking and screaming into creating thousands of jobs in 2004. 

The Bush Administration's Labor Department came down rather quickly with changes to overtime rules that have stood since the 1930's. The basic core of this new overtime regulation stated that no overtime needed to be paid for those making $65,000.00 a year or greater. In the 21st century, this is really a pretty middle class salary, especially in a single wage earner family. It also affects millions of Americans whether the Bush Administration will admit it or not. There are many hourly and salaried people in this $65,000.00 to $100,000 range. There are many jobs in this range, some of which are perfect for outsourcing I might add.

Corporate America was very interested in seeing this new overtime regulation to go into effect. It looked like the regulations might be put in place without a syllable of public comment or debate. Labor unions got wind of the changes though and started sounding the alarm. Some Americans started waking up to the fact that this regulation change was like government reaching directly into their wallet and taking money. These people started writing their Congressman and complaining. Eventually, the Democrats joined in earnest during the grocery workers strike. 

Democratic politicians started attaching riders to various bills trying to block the Labor Department from implementing the overtime changes. With the help of some moderate Republicans, with their own irate constituents, the overtime rule change stalled. Still it seemed that eventually the regulations would be implemented. Many businesses started implementing the new overtime rules anyway, figuring that by the time any bold employee took them to court the rules would be changed.

In this environment, a clear numerical ceiling for compelling uncompensated overtime and the threat of potential outsourcing drove many an harried employee to just do what the boss required. This caused job growth to stall. Consider the following example. A company has four $65,000.00 a year employees and they are being compelled to work fifty-hour workweeks; productivity soars, but labor costs are flat. Were the company forced to pay these individuals overtime, then it would suddenly make good business sense to hire another individual at a comparable salary. This is one of the main reasons that jobs growth has been so stagnant during the Bush Administration's reign. It did not make good business sense to hire more people.

With the backbone that they gained from irate constituents back home, Democrats tried hard to keep the regulations from making it to the street. Finally, the Bush Administration consented to raise the salary level where overtime would no longer be required at $100,000.00. Democrats still fought on, but most moderate Republicans were able to endorse this change and voted to allow the regulations to take effect a short time ago.

However, it was clear very early in 2004 that the new ceiling on the overtime regulation was going to be $100,000.00, not the $65,000.00 that Corporate America wanted. Corporations began adjusting their own internal policies on overtime to conform to the new reality that would soon be put in effect. Viola! Thousands of great new positions just opened up. There are a lot of jobs in the $65,000.00 to $100,000.00 range and they are not McJobs either. These are good paying jobs that suddenly got magically created, because it was no longer legal to press your employees quite so hard. No wonder the productivity gains as measured by the output of the average American worker have been so stellar in the last couple of years.

George W. Bush is trying to claim his economic policies created the jobs that are starting to become available in 2004. One need only look at the productivity numbers and job growth over the last few years to realize that the Bush's economic policies favored big business and had a real negative impact on the lives of average American workers. The Democrats and the labor unions are responsible for tens of thousands of high paying jobs that are now becoming available in 2004, not George W. Bush.