With unemployment at 10.2% and the apparent failure of the $787 billion stimulus bill to adequately create/save jobs or gas the economy, the focus now of House Democrats is on jobs creation. The Jobs Now Caucus, with 161 representatives, is spearheading the effort. Rep. Marcy Kaptur (D-OH) is co-chairwoman of the bipartisan caucus.
According to The Hill:
'Kaptur said Congress has not spent enough time this year on job creation.
“Remember, we’ve had many other issues this year, and this has not got the kind of focus members have been hoping for,†she said.'
Ah, yes, 'many other issues' - like millions of jobs lost. Glad to hear that you are now getting down to brass tacks, Marcy.
Democrats in both the House and the Senate are talking about new business loans for small businesses, hiring tax credits, and infrastructure investments. There is also discussion about a new federal unemployment benefits extension, which may be part of a fix-it bill to rectify the deadline problem in the previous unemployment extension which meant that citizens in high-unemployment states couldn't claim their extra 6 weeks of benefits.
I'm glad to hear about this. Unemployment assistance provides direct bottom-up stimulus, while small businesses are the prime drivers of the economy in terms of employment.
Republicans often cite the failure of the stimulus bill (The American Recovery and Reinvestment Act) to create jobs. According to Recovery.gov the stimulus has created or saved just over 640,000 jobs. Indirect economic impact of the stimulus is around 1 million jobs created or saved, according to the White House and independent economists from both Moody's and the Congressional Budget Office. I have no idea if these figures are accurate or not - clearly the stimulus has had some impact.
But in the face of a few million jobs lost since the recession started, these numbers pale. One of the reasons is perhaps the not-oft-cited fact that a mere $220 billion of the $787 billion funds allotted in the stimulus bill has actually been spent. If the money isn't being spent it can't stimulate anything. (To be fair, $84.8 billion has been "spent" in the form of tax benefits, for which there is $288 billion allotted. Presumably once tax return time for 2009 rolls around next April this tax relief will be realized.)
I'm not sure what the best economic stimulus is - I'm not an economist. But common sense tells me that direct, bottom-up stimulus is the best way to actually get the economy moving, i.e. people spending money. Spending means goods and services, which means jobs. I'm oversimplifying, I know, but this current method of big government contracts awarded after long struggles with red tape isn't the most efficient way to go about this. Sure, it helps some people in some areas. But it's slow, prone to corruption, and focused on very specific areas.
Do we need another unemployment benefits extension? What about a jobs bill? Do the other measures - SMB loans, tax credits, infrastructure spending - make sense to you?
If not what should the government be doing to address high unemployment?
Related posts:
- Unemployment extension considered as part of jobs bill
- Senate Dems propose work-share program
- Minnesota one of 23 states facing unemployment funding deficit
- President Obama to hold jobs summit in December
- Unemployment benefits delayed in Michigan
- Flawed unemployment extension legislation means potential "fix-it" bill
- Unemployment rate hits 10.2% nationwide
- President Obama signs unemployment extension bill HR 3548 into law
- House passes unemployment extension bill HR 3548 by vote of 403-12
- Senate passes unemployment extension by unanimous vote
- Unemployment benefits extension Senate vote inches toward finish line
- Unemployment extension cloture vote to be held in Senate
- GOP stalling on unemployment extension bill
- Senate votes 85-2 to hold final unemployment extension vote
recommend
Facebook
Twitter
bookmark 
print
Comments: 5
These expenditures mostly don't pass Main Street now before they go out. Some of the most infamous contractors have headquartered themselves offshore.
A huge pile went to the IMF as one of Obama's first priorities.
Local places may have to figure out how to trade among themselves. The Nearings, famous back-to-the-landers, advocated maple syrup as a medium of exchange in their area.
Reining in the international conglomerates will not be easy because they exist on printed money. They do not have to care what ordinary citizens need, only how to get monopolies, such as city water systems, so they can try to get high prices for degraded water, a little frosting to go with the meat they get from politicians.
Saving rainwater, growing food, and composting waste is a good idea anyway, even in the cities. You have a better idea what is in it if you grow it yourself. Food and fiber plants can be gorgeous, and it's fun trading with your neighbors and knowing who they are.
I don't have a problem being accused of wearing a tin-foil hat. I live in a junk-to-funk fashion kind of town.
The transition people are saying you need a community of known and trusted people of about 50. That's kind of a lot, but if you are unemployed, you have time to run around and volunteer with things, many of which can garner you pretty good food that others couldn't afford to buy before the expiration date.
If people ignore the federal government, maybe it will begin to care about real people again. I think it's going to be a while still yet.
What is it that we are to purchase that will directly stimulate our economy, as we have very few manufacturing in our country? If people want to see an immediate recovery, we could always go back to the credit and housing based economy that powered us for the past 30 years or so and put us in the predicament we now find ourselves. But look at where that has gotten us…
We need a comprehensive public works program using American businesses and manufacturers. Despite the cries from those who espouse the free market principles of claims of protectionism, it’s clear that we must practice some form of it as there seems to be a lack of corporate patriotism and was how America built itself up to become the global power that it was. Besides, our infrastructure is falling apart and any civilization from ancient Rome to present-day China realized the importance of such.
Small business loans and tax credits directed toward that sector will help in repowering the economy, as small businesses are the driving force behind new innovations and job creation on local and state economic levels. Without any ability to garner financing from lenders - as they seem to be busy using stimulus money to acquire other assets, lend money amongst themselves and invest off-shore - small businesses are forced to make further cutbacks and layoffs, making the economic situation worse and the government has to step in – investors aren’t willing to take a chance in this environment.
Had the Obama administration blown the entire wad, not only would that have been not prudent, economically irresponsible and unwise, but then again - we Americans like to go big. The howling that would have come from the need for a second stimulus would have been ear-shattering had the money been spent the way the fiscally-responsible members of the GOP gotten their wish. A bunch of superficial tax cuts that only increase the federal deficit.
Bottom line, tearing up something is hard; building something back up is infinitely harder and takes much more time to do. It’d be foolish to rebuild on the same foundation that caused it to crumble in the first place.