Two Cheers and One Jeer for the American Jobs Act
Two cheers for the president and his American Jobs Act. Cheer Number One: In presenting it to a joint session of
Second cheer: He laid out the problem correctly and effectively. He explained why jobs and growth must be the nation's first priority now -- not the federal deficit. The economy is in crisis. People are hurting. So government must act, and act quickly. It's irresponsible at a time like this to suggest that government should simply close down.
But a jeer because the jobs plan he presented isn't nearly large enough or bold enough to make a major dent in unemployment, or to restart the economy.
The net new boost to the economy is closer to
And much of that
But temporary tax cuts haven't proven to be particularly effective in stimulating new spending in times of economic stress. People tend to use them to pay off debts or increase savings. Companies use them to reduce costs, but they won't make additional hires unless they expect additional sales -- which won't occur unless consumers increase their spending.
That leaves some
Why did the president include so many tax cuts, and why didn't he make his proposal sufficiently large to make a real impact on jobs and growth? Because he crafted it in order to appeal to Republicans. To get it enacted, he needs their votes.
I'm having a dizzying sense of déjà vu. The first
That's been the heart of Obama's dilemma. Big and bold enough to make a difference, and Republicans are certain to reject it. Small and focused on tax cuts, and maybe Republicans will bite. But even if they sign on, what's the point of the exercise if it won't have a measurable effect on jobs and growth?
And why would they sign on this time, anyway?
The president would have done better with a plan that was big enough to make a real difference. And then, when Republicans rejected it, campaign on it.
So two cheers -- for both the president's style and his words. And one jeer: He failed on substance and strategy.
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Two Cheers and One Jeer for the American Jobs Act | Politics
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