Fri Sep 09, 2011 at 12:20:00 PM EDT
|
| President Obama spoke forcefully last night and announced a bold $447 billion plan which could help New Jersey put more people back to work, put more money in the pockets of those who already have a job, and incentivize employers. If fully implemented it would push sufficient money into our economy to reduce unemployment and grow our GDP in 2012. While Republicans appear more receptive than anticipated, it is questionable whether the entire plan will be enacted. The plan itself is a one-year shot-in-the arm to prime the pump and provide relief, but it is not a panacea. For Obama, New Jerseyans, and most Americans there is much in the balance. Our President appears determined to swim, not sink, but will have to negotiate the rough currents with all his wits and cunning. |
| Bill Orr :: NJ JOBS: Obama's Jobs Act Proposals in a Sink or Swim World |
| These are the key elements of the American Jobs Act:
Putting Workers Back on the Job While Rebuilding and Modernizing America might provide about $ 3 billion to NJ to hire teachers and first responders, modernize schools and surface transportation, rehabilitate/repurpose vacant property, and initiate wireless improvements. This plan is highly stimulative for us as it generates new jobs, gets more money circulating in our economy, and increases consumer demand.
Pathways Back to Work for Americans Looking for Jobs might provide about $1 billion to NJ for unemployment insurance which would offer relief to many and be highly stimulative as most of it would quickly be spent and recirculated.
Tax Cuts to Help America's Small Businesses Hire and Grow might provide over $1 billion to NJ to stimulate new hiring, which will have less immediate impact, but can still help small businesses which are the main engine for new hires and which have difficulty borrowing money to expand. Large businesses seem to prefer to sit on cash and have adopted a wait-and-see approach.
More Money in the Pockets of Every American Worker and Family which might provide up to $3 billion to NJ in increased take-home pay, particularly beneficial for struggling middle and lower class New Jerseyans. With an average of $30 weekly per family, however, its impact is less substantial as those who are better off may just save the money.
President Obama's plans provide limited funds for education and job retraining, but such is just one area where our own NJ government must do more. The State's current listing for jobs most in demand includes programmers, software engineers, nurses, supervisory/general managers, and accountants, with most positions requiring a Bachelor's or specialized degree. Essential for many unemployed is job retraining into a new skill, and for our future we need more support for higher education. Governor Christie commissioned the Governor Kean Higher Education Study, said he liked its recommendations for more funding, but said he didn't have the money. He should take the report off the shelf and give it the attention it deserves. Other needed approaches have been discussed in the NJ JOBS series, here, here, here, and here.
In yesterday's NY Times David Leonhard said, If history is a guide, the odds that the American economy is falling into a double-dip recession have risen sharply in recent weeks and may even have reached 50 percent. Most ominously, job growth has slowed to a pace that typically signals the start of a recession." In this "sink or swim" moment our federal, state, and local governments have a last opportunity to pull together and marshall the resources to prevent a long and damaging flood. |
|
Featured Stories  |
|
|
|
|
|
|
|
|
.gif)
