David Newton On “Job Creation”

David Newton, Westmont professor of entrepreneurial finance, has co-authored a 160-page e-book, Job Creation: How it Really Works and Why Government Doesn’t Understand It.

Although the book will be published in traditional format later this fall, the 10 chapter eBook is now available exclusively as an online download for $18. The table of contents and introduction can be read online for free prior to purchase.

Job Creation grew out of Newton’s numerous nationwide speaking engagements since October 2008 about the sub-prime lending crisis, government bailouts, the recession, stimulus spending, record federal deficits and jobs. At the same time, co-author Andrew F Puzder, chief executive of CKE Restaurants Inc., has been dealing on a daily basis with the increasingly negative impact of government actions on job creation, and lecturing at colleges and universities as to how job creation actually works.

“Sustainable job creation is strictly a private-sector phenomenon strongly influenced by what we call ‘the certainty factor,’” Puzder says. “We examine how the private sector and free market capitalism have always supported creativity, innovation, and enterprise opportunities for entrepreneurs, as well as multinational corporations. We then analyze how excessive government taxation and regulation create economic uncertainty and discourage the entrepreneurial risk taking that results in job creation and economic prosperity. We conclude with specific proposals that’ll lead to long-term sustainable job creation.”

The book details the 100-year track record of U.S. employment (1910-2010), offering insights about private-sector wealth creation and government wealth redistribution. Newton and Puzder explain the time-tested steps of why job creation has always been and must continue to be a business decision.

Newton and Puzder define primary and secondary job creation, examine how hiring is part of a firm’s business model, and offer a clear three-point proposal to strengthen “the certainty factor” to get companies hiring again. They conclude with a review of the added benefits that will accrue to the U.S. economy when robust job creation gets going again.

“Job creation can’t be planned by government programs,” Newton says. “We hope the word will spread about how job creation really works, and maybe even government officials and politicians will read the book and finally figure out how to let the private sector do its job.”