Unpacking The Jobs Plan – What is Really There?

 

The link below is to an article in the Wall Street Journal about the President’s jobs bill.  It is an excellent overview and every employer should read this.  Some key points contained in the jobs plan….

  • Nothing really addresses the underling cause of current unemployment; the real estate mess.  Until real estate, housing in particular, starts to make a comeback we will not see tremendous growth in jobs.
  • Like a domino effect, the housing crisis has created an access to capital crisis.  This was cited in Inc. magazine as the number one reason why small businesses are not hiring in a robust way.  According to the article below nothing about capital is addressed in the plan.  Small business tax breaks are part of the bill, but they appear to be temporary and most small business owners will take those savings to the bottom line, not necessarily hire people.
  • A large portion of the plan relies on government sponsored/funded construction projects. While this may offer some temporary unemployment relief for that industry, it is doubtful the Super Committee will spare the axe for these projects.

Read through the article and leave me your thoughts.  The comments on the WSJ site are particularly interesting.

Article Link:  http://online.wsj.com/article/SB10001424053111904836104576560593248402036.html

 

1 comment

  1. The one part of this plan that has any chance at bipartisan support is the construction spending piece by putting unemployed construction workers back to work. In a sort of hazy attempt at duplicating the WPA from the Depression-era days, this piece has the most chance of impacting the economy. Many of the workers are receiving unemployment benefits anyway whether they put on their tool pouch or sit at home and watch TV so why not put them back to work with a paycheck in exchange for a service they provide? Our infrastructure is literally falling apart underneath our feet and above our heads. It is critical that we do something about the aging roads, bridges, water and sewer lines and dams that date back to the days of the WPA. Even though the housing boom is not going to come back to pre-recession levels anytime soon, not all of the unemployed construction workers are just from the residential housing boom- many, many workers are infrastructure related. The trickle down effect of putting a million people back to work also affects other industries tied to construction such as archtecture, civil and mechanical engineering as well as the taxes generated from increased spending in these areas.

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