King’s Alumnus Publishes Book on Job Creation
Dave Newton defends views on CNN’s “Your Money”
After Dave Newton graduated with a degree in Business from The King’s College in 1981, he pursued both an MBA and a Ph.D. in finance. He worked in investment banking for a couple of years before teaching at the University of Massachusetts, Amherst and Pepperdine University. In 1990, he became a professor of finance at Westmont College, located in Santa Barbara, Calif. At Westmont, he started a successful program in Entrepreneurship for business and economics students.
This year, Newton and co-author Andrew F. Puzder wrote a book titled “Job Creation: How it Really Works and Why the Government Doesn’t Understand It.” Newton was involved in the project, he said, because he “was increasingly frustrated with the failure of the stimulus funds and other government spending/borrowing plans to have any impact on U.S. employment.”
Newton and Puzder maintain that governmental policies can harm the necessary economic conditions which promote job growth. They coined a term -- “The Certainty Factor” -- to talk about these conditions. “When there is greater certainty regarding future conditions, businesses are more willing to act, Newton said.” In times of certainty, they will take calculated risks to invest in growth strategies. The authors also argue that government actions decrease rather than increase certainty.
Newton said on CNN’s “Your Money” on Oct. 16, “What really contributes to a great certainty factor is low taxes, low government regulation, less government spending, smaller deficits.” These conditions encourage entrepreneurs to invest. That creates immediate jobs. The future profits are then re-invested and create more jobs. Newton said currently there is $2.3 trillion of private sector cash sitting on the sidelines due to uncertainty, most of which have been created by government actions. But why would an investor put that money at risk when he doesn’t know what the future tax rate will be or what regulations will be? A climate of greater certainty would bring that money into the economy, and would create “private sector growth that would add millions of jobs.”
Students in the School of Business at The King’s College not only learn the quantitative and management skills necessary for success in the world of business. They are also exposed to the ideas—like the ones Newton proposes—that will help them understand the social, political, and economic foundations of the market.
Newton said, “I am so glad to see a new generation of students primed for the College’s business school.” With the leadership of Dean Leigh Anne Walker, Provost Marvin Olasky, and President Dinesh D’Souza, he said, “the School of Business is poised for making a huge impact in both the professional and academic markets.”
The King's College is located in the Empire State Building in New York City.
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