Private corporations create jobs by investing capital in productive capacity. With zero interest rates and free money, banks have taken up Fed liquidity and pumped it into 10 year bonds, or deployed the capital overseas to get a better return in currencies, commodities or other sovereign bonds.
Good luck to Mr Obama in this futile attempt to "create" jobs. Jobs will be created when firms invest to generate a return on capital above and beyond their initial outlay. How are they going to value a project when interest rates are zero? Mr Obama prefers to take money from the taxpayer to keep dinasours like GM alive, a company that will never be competitive again or generate an acceptable return without a handout.
Let uncompetitive firms die, and ingenuity and entrepreneurial spirit flourish without govt intervention (but have smart, and unambigous regulatory oversight) and the economy will replace lost jobs in time. Globalisation hasn't hurt apple, or google or a host of other great comapnies becuase they are the best at what they do, and all globalisation has done is let them make money in other markets. How can a company like GM in a Detroit ghetto compete with the Japs or Germans at making cars?? I have no idea why they bother bailing them out. Let them die, and any parts that are worth anything will be purchased by the market.
