The Danger of Assessing President Obama’s $447 Billion Jobs Plan?
As many economists and politicians go over President Obama’s proposed jobs plan, the content of his speech before the joint congressional houses, will serve as the barometer of measurement regarding whether it will contribute enough jobs or not, to make a dent in the unemployment rate. Outside economists will be able to assess his proposal based on its merits and its contribution to jobs creation in the succeeding quarters. By some account, it appears from the speech that if the plan is passed by congress, we may be able to see the unemployment rate start trending downwards.
But on what account does the President anticipate that this new plan will achieve the purpose of job creation? So many, as indicated in his feisty 38 minute speech; including the opportunity to revamp corporate tax code, rebuild America’s crumbling classrooms infrastructure and public transit systems, rebuild roads and bridges, retain classroom teachers that are laid-off or about to be laid-off, and some more. The President’s Administration wants to improve America’s competitiveness, cut red tape that is preventing new venture capitalists from establishing new ventures, subsidize apprenticeship programs in professions that are difficult to recruit trained hands, allow workers to hold on to some of their earnings that previously go to social security taxes, and help facilitate another GI bill for Iraq and Afghanistan veterans. To save valuable and scarce money on projects, an assessment strategy as to whether a project is needed and how much of it is readily needed at this time, are going to be built into the project’s initiation and completion. Obama’s Administration is offering an employer four thousand dollars to employ Americans who have been out of work for over 6 months. All these are laudable on paper; however, no one can tell if this new plan can achieve the totality of the President’s intention for the American economy and the unemployed.
For the most part, his past proposals, touted as reinvestment plans, have been difficult to appropriately assess, considering the dichotomy over whether they added enough jobs to the economy or not? Congressional Budget Office assessments of the last two stimulus plans indicate that about 1.5 million jobs were contributed to the economy and another two and a half million saved, just by taking the necessary action; although, some critics have doubts. Frankly, no one can adequately do justice to the assessment of the provisions of the new plan until the proposal comes to the hill, debated, passed and implemented. The President has promised to forward the jobs plan bill to congress in the coming week; and, he is going to sell the plan to Americans on the road.
The blog today documents the American Jobs Act, word for word, as offered in the President’s Speech on September 8, 2011 before congress; and, as released by the White house Press Office:
Early observations from Republican leaders indicate that there are parts of the current plan they love, others they can live with, a few they are willing to put their weight behind, and some, a no go area. For most part, this is good. Few things match the test of experience and time. Would the plan get the support and blessing of Republican lawmakers who have constantly attempted to blind sight the country and or work against the efforts of the President? Only time can tell!