President Barack Obama meets with Treasury Secretary Timothy Geithner and National Economic Council Director Gene Sperling in the Oval Office, Aug. 5, 2011. (Official White House Photo by Pete Souza)
Obama is presiding over an unemployment rate over that has hovered over nine percent since taking office. While some of this is inherited from Bush, the Times noted in a recent article that “no American president since Franklin Delano Roosevelt has won a second term in office when the unemployment rate on Election Day topped 7.2 percent.”
It goes without saying, getting people work will help Obama in his reelection. There are numerous ways to go about getting people working depending on what economist you talk to, some championing tax cuts for businesses while others suggest another stimulus plan of “shovel ready” jobs. What can Obama do to get people in jobs before the election?
I like the new job act and think that if the republicans can support it, we as a nation, in the spirit of bipartisanship, have a real chance of creating new jobs.
If, as seems likely, his plan at this point is to stand behind the American Jobs Act, he needs to be willing to stand up to Republicans in order to get the bill passed. The bill itself should create jobs if passed, although it’s unlikely that unemployment will be below 7.2 percent by November 2012. It’s a combination of both spending and tax breaks, which he should be able to make a strong argument for. Most economists would agree that job creation, even during a recession, requires spending. He’s going to need to push for public support for the bill, and be vocal about reasons that Republican obstruction make job creation less likely.
A long term solution would require both immediate job creation via some sort of stimulus package and investment in education and emerging industries, such as clean energy. The chances of that passing through the present congress aren’t good.
In my opinion, Obama seems to have the right formula to stimulate the economy and create more jobs. I believe more public spending and higher taxes for the rich are necessary. The question now is can he convince lawmakers of his plan. Sadly, the point will not be whether is plans will be effective or not. It will be more about Republican lawmakers looking at the issues reasonably and not with a political agenda in mind!