Tags: FedEx | CEO | Smith | Businesses | Not | Stimulus | Create

FedEx CEO Smith: Businesses, Not Stimulus, Create Jobs

Friday, 08 Oct 2010 01:08 PM

Only businesses can create jobs via private investment, while economic-stimulus measures will fail to lower unemployment rates, says FedEx CEO and Chairman Frederick Smith.

“The only thing that virtually tracks jobs creation almost 100 percent is private business investment. And private business investment today is down about 8 percent from its peak a couple of years ago,” Smith tells CNBC.

While stimulus measures won’t make a dent in unemployment rates, neither will actions taken by the Federal Reserve, Smith says.

“It doesn’t make any difference what the Fed does in terms of easing (quantitative easing), it’s business investment that’s the driver.”

Quantitative easing is a term describing the Fed’s printing of money to buy government debt held by private banks in an effort to free up liquidity in those banks so they’ll lend again.

The country’s unemployment rate hit 9.6 percent in September of this year, unchanged from August according to the Labor Department.

Despite some gains in private-sector hiring, a drop in government jobs kept the rate more or less static, the Washington Post reports.

Republican lawmakers quickly criticized the Obama administration for failing to make a serious dent in jobless rates in wake of the report, released about a month before November’s mid-term elections.

“Over the past two years, the policies pursued by the president and Democrat leaders in Congress have created a cloud of uncertainty and fear that has inhibited productivity, innovation and job creation,” according to House Minority Whip Eric Cantor (R-Va.).

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Only businesses can create jobs via private investment, while economic-stimulus measures will fail to lower unemployment rates, says FedEx CEO and Chairman Frederick Smith. The only thing that virtually tracks jobs creation almost 100 percent is private business...
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2010-08-08
Friday, 08 Oct 2010 01:08 PM
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