Obama’s Jobs-Jobs-Jobs Plan

President Obama will be speaking before Congress Thursday, offering another plan to stimulate jobs-jobs-jobs.  Among the ideas he’ll propose:

*Extending the 4.2% Social Security payroll tax rate on employees an additional year (the rate is scheduled to return to 6.2% in 2012).  Letting people keep more of their money is perfectly fine with me.  If job-jobs-jobs is the goal, however, wouldn’t it make sense to reduce the employers’ portion of the tax, thus reducing the cost of hiring employees?  Not to mention making the rate reduction permanent, so employers can plan long-term?

*Extending unemployment benefits.  So how’s that been working out the other times President Obama signed off on it?  Extending unemployment benefits only fuels unemployment.

*More Keynesian stimulus spending on public works projects.   Funds for this spending will come from tax increases and/or more government borrowing, thus reducing the financing available in the private sector.  Since President Obama’s 2009 stimulus had a negative impact on private sector employment, is this really a mistake worth repeating?

When it’s election season, apparently so.

Advertisements

Tags: , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: