15 million Americans are unemployed and currently seeking work. Unfortunately few companies want to hire therefore shifting the responsibility to the government. I think government intervention in the market is the best thing to do because things are obviously not working. President Obama has come up with a few imperfect tools for generating jobs:
1.) Add directly to the federal payroll by hiring permanent or contract workers.
2.) Direct money to states and local governments so that they can hire or at least avoid layoffs.
3.) Direct money to projects that need workers.
4.) Give tax credits to businesses that hire now.
His first initiative is to go after private sectors (The part of a nation's economy which is not controlled by the government.) It is Obama's intent that with tax breaks that private employers will do the hiring. However, if this goes wrong the government will have to add to the federal payroll.
“We have to help stoke the private-sector engine of job growth,” said Jared Bernstein, chief economist in the vice president’s office, speaking for the administration. “Government cannot by itself create the employment necessary to fully offset the millions of jobs lost. What we can do is help to create the conditions fertile for robust hiring by the private sector.”
Mr. Obama has some other options. He could channel money to state and municipal governments with the proviso that it be used to subsidize the wages and benefits of police officers, teachers, sewer workers, engineers and others who have been furloughed or soon will be.
I assume that due to the nature of private sectors that they are more capable of offering jobs so I'm for this idea because I think that it is most likely to work. Obama has a few ideas on how to open up the job market but which will he choose is still up in the air. What are your thoughts on President Obama's decision to restore the job market?
www.nytimes.com/2010/01/31/weekinreview/31uchitelle.html?ref=economy
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I think that it is very important to come up with ways to get people busy and working. I think that it is smart to try to create jobs, but I think it is of upmost importance that money be funneled to state governments so that current jobs are not cut. In health inspection, firefighters, and police stations many positions have been cut in the past decade, and cutting further would severely decrease the safety of the public. Private sector jobs are important, but I think that we could benefit from a new massive government run work program. So much of the country's infrastructure is crumbling and if we got people to work to repair the run down highways and train tracks and create a more effective public transport system that would kill two birds with one stone and help stimulate the economy. If everyone who is currently unemployed was working on such government projects, then their overall spending would increase and the economy would start recovering more.
ReplyDeleteI agree with Hannah: if you think back to FDR, he managed to pull us out of the depression with government programs to give jobs and provide needed services to the country. Obama would do well to repeat this tactic on projects transportation, as Hannah suggests, though I would say that rather than work on highways we should work on methods of faster public transportation like they have in Europe. A, E
ReplyDeletetrying to creat more job opportunities is very effective way to help. But the question at the same time...is about more and more technology are being used as labor force...that's also the reason why the unempolyee rate increased.
ReplyDeleteMr. Obama could channel money to state and municipal governments with the proviso that it be used to subsidize the wages and benefits of police officers, teachers, sewer workers, engineers and others who have been furloughed or soon will be. It's also a good way to deal with the situation in some way.