Obama's $300 billion jobs plan

Discussion in 'Economics' started by bond_trad3r, Sep 7, 2011.

Will it work?

  1. Yes

    2 vote(s)
  2. No

    26 vote(s)
  1. The centerpiece of the job creation package that President Barack Obama plans to announce Thursday — payroll tax relief for workers and probably their employers — is neither his first policy choice nor that of many economists. But it is the one that they figure has the best chance of getting Republicans' support.

    Obama has signaled that he will propose to extend for another year a reduction of 2 percentage points in the 6.2 percent Social Security payroll tax that employees pay, which means about $1,000 more for the average household. And he is considering expanding the tax relief to employers.

    In his prime-time address to a joint session of Congress, facing Republican lawmakers and many television viewers skeptical of Washington's ability to spur the lagging economy, Obama is expected to call for a package totaling several hundreds of billions of dollars that would also extend other business tax cuts, put federal dollars into building and repairing roads, rails, airports, schools and other infrastructure programs and provide aid to states to avert more layoffs of teachers.

    But the single biggest stimulus measure he will propose is likely to be temporary payroll tax relief. If the current tax cut, due to expire at the end of the year, is expanded next year to employers as well as employees, it would pump roughly $200 billion into the economy, with the aim of stimulating much-needed demand for goods and services from consumers and businesses and, additionally, of giving companies an incentive to hire additional employees.

    For the White House, its appeal is that it may be the only large stimulus measure that can pass Congress this year given Republicans' preference for tax cuts.

    Read more: http://www.stltoday.com/news/nation...bbe-5858-a942-2aa02653e600.html#ixzz1XF8wr0FT
  2. I'm glad we re in the economics forum so someone can please expalin to me how filling pot holes is going to stimulate the economy.

    We have a housing/real estate depression not a pot hole problem.

    What college degree do you need to fill a pot hole? I don't think designing, engineersing a road will stimulate the private economy, that stuff seems to be Federal.

    We have Federal money to stimulate state and fed employees. Do I read this right?

    Fed aid to prevent layoff of teachers is not going to create jobs.
  3. the teachers and pot diggers will spend the money on stuff eventually thus stimulation of economics
  4. nothing is going to happen. any bills have to originate in the republican controlled house. the problem is that the republicans will reject anything obama proposes. they have determined that their beat chance to win the white house is to not allow obama to have any sucess in any area. they are willing to tank the economy to achieve that goal.
  5. LOL... this is beyond fucking comical. 300 billion for a "Public Works" project to employee how many people? 23% unemployment rate and it may bring it down to 22%?

    QE3 under the radar. This is just the first push to create more wasted money.

    However there is a Catch 22 in the situation we are in.

    We either take care of the "Deficit" and start cutting or we take care of creating jobs. WE CAN NOT TAKE CARE OF BOTH.

    If we want to create jobs...we open the flood gate and pour trillions more into the system, we cut corporate taxes, we cut person taxation and we raise the debt level x100.

    If we want fiscal responsibly, we accept the fact that Structural unemployment is here to stay for decades, that the GOV number of unemployed will remain at 10% and that job creation will be close to zero. (Real unemployment staying around 23%)

    But the chicken shit Politicians on both sides do not have the balls to focus on either one and really start to address the issue.

    If your unemployed now and you live in 40 of the hard hit states, your fucked. You will not find a job that was equal to or close to the wages you were earning.

  6. Been to Michigan lately?
  7. rew


    Given that social security is now in deficit it is outrageously irresponsible to continue the social security tax cut, which should never have been implemented in the first place.

    If people want their big entitlement programs they should have to pay for them.
  8. dewton


    I think Obama's idea is good. The problem with our economy is simply the lack of sufficient money in circulation to service debt. Putting more money into the economy will help prevent bankrupsies and closed businesses.
  9. ok follow the UK 50% income tax and 20% sales tax
  10. And that's a good thing. No one in their right mind should believe that "stimulating" gov't employment and hiring people to dig and then re-fill ditches is a solution to huge problems in manufacturing, housing, regulations-and-unions-gone wild and other ills.
    #10     Sep 7, 2011