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Is GOP really prepared to create jobs in 2011?

by Denny Freidenrich - 01/25/11 12:17 AM ET

They made good on their promise to kill what has commonly become known as ObamaCare; but, are Republicans truly prepared to replace it and create millions of new jobs in 2011?

I recently asked one of the richest people I know to shed some light on this dark and twisted question. My Orange County friend hails from Texas. He is a successful real estate investor. He admits the new tax bill puts more money in his pocket. If you believe the new Speaker of the House, my friend also is going to create jobs with his additional wealth.

{mosads}“My typical deal is finding a distressed parcel at a great price, spending a certain amount (of money) during the entitlement process, and then selling it to a developer for a profit. Eventually, someone will build on that land which, of course, means they will hire construction crews. But that someone generally isn’t me. Will the new tax law, overall, help my industry? I think it will. Does this mean I am going to hire more people to work in my office? That’s the big unanswered question. Given the number of real estate transactions I anticipate doing in 2011, I believe I have the right number of people working for me now. Stay tuned.”

For those who actively are investing in start-up companies, I’m confident they sleep well knowing they are doing their part to grow the economy. Trouble is there are a lot more people who will benefit from the tax-cut extension who have absolutely no intention of hiring new people this year.

My friend from Texas reluctantly agrees: “With or without ObamaCare, does anyone believe a physician making $500,000 is thinking about adding more nurses to his staff? If he is, I’d like to shake his (or her) hand. That’s the ‘real world’ rub as I see it.”

Reading between the lines, it looks to me like my friend is somewhere in the mushy middle. If, thanks to the new tax bill, there are jobs to be created, my friend will not be directly responsible. Which begs the question: If not this successful businessman, then who?

Laguna Beach, Calif.