Eight steps Congress can take to create more jobs
Filed under: Economy
The U.S. unemployment rate is at a 25-year high, 10.2%, and the job market is likely to get worse before it gets better. The nation's economy has started to recover, but net monthly job creation -- a lag indicator -- is not likely to start for several months, and perhaps not until mid-2010. That means the unemployment rate will probably rise until early next year. Is the United States resigned to just let market forces play themselves out, with the unemployment rate rising to whatever level it could? Or are there additional actions the U.S. Congress and state legislatures can take to stimulate job growth and create jobs? Indeed, there are measures legislators can enact. Below are a few:
1. Lower the capital gains tax to encourage more investment.
2. Pass a series of targeted, investment tax credits for high value-added sectors that are likely to be star performers in the U.S. economy over the next decade. The tax credits should stipulate that companies must retain most jobs added under the program in the United States.
3. Temporarily suspend the payroll tax, or at least consider giving small businesses more time to pay the tax on new hires, as a way of providing an incentive to hire.
4. Accelerate federal infrastructure programs and grants to states, where possible, to get as many infrastructure/construction workers employed as is reasonably possible during the next 12 months to 15 months. The goal is to increase demand from all pressure points to give the U.S. economic recovery more momentum.
5. Further extend both existing unemployment and food stamp programs: numerous studies have shown that dollars from both of these programs are spent quickly -- i.e. they create demand for goods quickly -- and demand for goods leads to jobs. In addition, increasing the modest unemployment stipend also would likely translate into a increased flow of dollars into communities.
6. Increase both student loan guarantees and grants for undergraduate/graduate study. Now is not the time to cut federal aid to higher education. On the contrary, Congress should be increasing aid to higher education -- community college level through four-year college level -- because, with so few job openings and so many applicants, millions more Americans will be returning to school.
Further, with that return to campus, the United States can make the best (new skills attainment) out of a negative (lack of jobs): now is a great time for millions of adult Americans to learn new skills, and, in some cases, to train for an entirely new career. The opportunity cost is very low.
Here's one example: a $500,000-plus unemployed mortgage bank executive returns to college for two years to add specialized skills to become a chief financial officer of a small- to mid-sized company. His focus: solar and wind energy companies and other greentech startups.
7. Congress could also increase specialized education grants to encourage the training of a whole new generation of mechanical engineers, electrical engineers, architects, scientists, chemists, physicists and teachers.
And did we mention health care reform? The states, perhaps with a partially matching federal grant, could increase state-level grants for medical students in training to be general practice physicians: we're going to need many more general practice physicians to treat those 30 million to 45 million additional adults regularly accessing health care services. That goes for nurses, as well.
8. Time to revive the CCC and WPA?
Finally, there also are larger, more-direct actions that Congress could take to increase employment, by resurrecting such agencies as the Civilian Conservation Corps (CCC) and the Works Progress Administration (WPA). There's plenty of work to be done in the nation and ample skilled and semi-skilled citizens willing to do it. Jobs would range from highly skilled professional positions in the engineering and architectural sciences, to more modest-skilled positions. Job tenures could be limited to 1 year to 2 years, or could extend for several years, depending on the project or mission.
However, regarding that last option, as of now, there doesn't appear to be sufficient political support for the CCC, WPA or comparable direct employment programs.
And let's hope public support and political pressure for the CCC and WPA remain low in the quarters ahead, because that means the nation's unemployment rate is falling.
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Financial Editor Joseph Lazzaro is writing a book on the U.S. presidency and the U.S. economy.
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Reader Comments (Page 1 of 7)
11-11-2009 @ 9:18AM
jay said...
9. They could all quit and put in real people that know what real work is, and that know American companies should operate on American soil & employ Americans.
Reply
11-12-2009 @ 6:17PM
AnimalsHaveCars said...
Hey Jay, Like these fools in congress will listen to reason and what is right for the "PEOPLE". Why do you think we find ourselves in this predicament.
11-11-2009 @ 9:29AM
Jerry said...
All eight ideas would cost Billions of taxpayer dollars. The US Government is so broke now, this would only add to the unsustainable burden of debt we already have. We haven't even raised the Debt Ceiling to cover last year's $1.4 TRILLION Deficit. (Mr. Obama is afraid to bring it up until Health Care passes.) And Fiscal 2010 will probably be the world's largest one-year Deficit ever recorded by mankind.... $2 TRILLION. And so your solution is to SPEND MORE! Yeah, right.
There should be Solution #9, which is, keep the Government out of it and let market forces prevail.
Reply
11-11-2009 @ 11:01AM
R Barber said...
This article is such a crock I can't believe they would even post it. You are right Tax cuts spend more! Are you s**ting me? This guy is an idiot!!!
11-12-2009 @ 9:43AM
Mark said...
The "market forces" worked well on Wall Street huh? If you call greed, fraud and corruption "working"
11-11-2009 @ 1:04PM
Lucie said...
That's the same thing that people said before the Great Depression (keep the government out of it and let the market take care of itself). If the government would have stepped in we would have never had a "Great Depression" instead it would have ended after a couple of months. That's when they brought in Rossevelt (whom they called a Socialist) who stepped in with long term goals that worked for many years. Now we need someone else willing to look long term instead of short term. That's exactly what Obama is doing and being called a Socialist too. History repeating itself!!!
11-11-2009 @ 1:16PM
Evelyn said...
What went with ALL the MONEY( Surplus) when BUSH went into office????????????
IF Bush's time was not up WHAT do you think he would do.
YET here we are with a MESS & Obama gets the blame/DO you think mccain could have done better//palin would not have a clue what to do either/she is a NUT CASE.some stupid people don't know how to do anything but complain .Why don't you come up with an answer????No you all are too stupid>
11-11-2009 @ 9:41AM
eghbert said...
These actions sounds just as much like socialism as the actions our government has been taking. What would stimulate the economy is for government to repeal ALL laws restricting business operations. Start over and keep it simple. There are so many laws now that NOONE knows all of them.
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11-11-2009 @ 9:42AM
Jerry said...
We should cancel NAFTA--this program introduced by the democrats under Bill Clinton has unemployed all kinds of Americans. We should raise import tarriffs 100% and offer tax incentives to American companies to open factories here. Vote out all the democrats as soon as possible and put jobs back in America---send all illegal alliens out of the country not give them amnesty.
Reply
11-17-2009 @ 9:23AM
golfnomad said...
Right, because the past 8 years none of the Repusivcans in power overspent.....
Give me a break
11-11-2009 @ 12:48PM
Sean said...
Really? You may want to do some homework. Clinton just finished what Bush I started.
Hell, if half of you anti-everything crowd actually did some of your own research when someone tells you something, you would find yourself a little bit more informed and a little less angry.
Ignorance stokes the fires of frustration. And you are fed non-sense on a constant basis. If not flat out lies, mis-information to steer you from the real facts.
11-11-2009 @ 1:03PM
Lucie said...
NAFTA was actually a George H. W. Bush baby that passed through during the Clinton Administration. Thank You.
11-11-2009 @ 2:22PM
Dan said...
This will work great! .... till a million chinese soldiers are standing on our soil with a forclosure notice. You think we're too socialist now. You ain't seen nothin' yet.
11-11-2009 @ 8:44PM
T Tate said...
You are 100% right except vote out Republicans & Democrats that do not vote to do this!!
11-18-2009 @ 5:06PM
erik said...
You think Republicans want jobs created in this country? hahahahhahahahhahahhaha
11-11-2009 @ 9:49AM
BOB said...
HERE IS A PERFECT IDEA:
1. USE OREGAN AND NEW JERSEY LAW REQUIRING A GAS ATTENDANT TO PUMP GAS IN EVERY STATE. MILLIONS OF JOBS.
2. REQUIRE OIL COMPANIES TO MAKE NATURAL GAS AVAILABLE IMMEDIATELY IN ALL STATIONS.
3. MANDATE NATURAL GAS TANKS ON ALL NEW CARS AND TRUCKS.
ALL PRIVATE MONEY AND REAL JOBS AND CLEAN AIR TO BOOT.
YOU GOT A BETTER IDEA ON HOW TO SPEND SOMEBODY ELSES MONEY? LEAVE THE FEDS OUT.
Reply
11-11-2009 @ 9:54AM
jaguar6cy said...
Reducing taxes and encouraging investment are not good socialist principals. Bigger government and more government control are what liberals and obama want. Jobs and business are not important.
Reply
11-11-2009 @ 9:51AM
Paul said...
I agree with those who say the Government is Broke. When you look Behind the scene you find that the Money they have printed is Worthless. The last few days, we saw More Government Number Twiddling as they Franticly try to artificialy Prop up the Wall. We might again today see the Government and Wall streets Number Twiddlers in action. That does Not mean everything is well. Banks are still playing numbers with Bailout Money and reporting that as Profit. These numbers are Not real as there is absolutely Nothing to support them. Soon the Price of Number Twiddling Will Come Due and when it does America Will Fall into the Worst Depression and Panic Far Greater than 1930s. I urge Everyone to Call your Congress and Demand they Stop doing this twiddling or Lose their Jobs next November . As a Direct result of all of these Government " Bailouts " and Number Twiddling here is the Future Problem that Will Hit Us All by next year ; These so called " Bailout " and " Stimulus " Packages will produce only Minimal results and will Not work as planned. But, it is Going to Raise both Income and Property Taxes by up to 42 Percent across the Pay Scale by end of next year. Those who are below the Tax bracket will find they Too Will Be Taxed. Despite what they tell you on TV, that is the Word. Insurance Rates are also set to rise Big as well as inflation in Food, Energy and Healthcare. The Dollar Will Become Worthless. Yes the economy could very well become a Panic Like Germanys in the 1920s'. All of this Has to happen for this Worthless Playmoney Injection to have any value at All. With the Trillions theyre Printing and Spending on Bailouts along with Bogus Unsupported Numbers, the Economy Cannot Help but slide into a Panic that No one will be able to stop. Just do the Math
Reply
11-11-2009 @ 2:43PM
lou said...
Paul,
I agree 100%. If people would stop and think about how things were just a few years before the housing bubble burst--brand new neighborhoods with high end priced homes going up everywhere there was an open field. People taking on debt they knew they could not pay back on those homes, mortgage brokers committing fraud on the loan applications, with the government encouraging such aimless spending. People living on credit, not much real money being passed. Now, we are just repeating history a few years later. The government encouraging people to spend money they quite possibly may not be able to pay back. Cash for Clunkers, tax credits for home buyers, fraud by people taking advantage of those programs, bank bailouts and low interest rates between banks to try to get them to open up for more loans that will probably be defaulted on. Grossly overpaid CEOs who claim to be doing God's work. There is more and more unemployment. I think the economy could come back, but not the way it is being done now. The government should not hold the carrot on the end of the stick and encourage people to take financial risks they possibly should not be taking. With the government owing trillions of dollars. I wonder if the next bubble to burst won't just wipe out the United States.
11-11-2009 @ 4:26PM
rustyandrick said...
Paul
First comment I have read that calls them the way they are.
I have been much of the same opinion, but you put in into the proper prespective. Now all we have to do is wake up and oust the current IDIOTS inWashington.