The Jobs Act

The poll before the President’s speech on September 8, 2011 showed that 75% of the long-term unemployed believed the economy has changed for the worse. The Former Labor Secretary said the potential danger is that we will lose the American spirit of optimism that is so central to our national character. If we lose that, we lose more than economic growth, we lose something that is essential to what America is fundamentally about. He and most mainstream economists believe that what is needed is what Washington won’t do. He says a misguided emphasis on the national debt is preventing recovery. “The problem is jobs not debt”.

I listened to the President’s speech and believe him to be right in that hard work and responsibility used to pay off; everyone got a fair shake and did their fair share. Good work and loyalty were rewarded with a decent salary and good benefits. If you did the right thing, anybody in America could succeed and for decades we watched that compact erode. The question is whether or not we can restore some of the fairness and security that has defined this nation since the beginning.

The President also said if we want companies to start here, stay here and hire here, we have to be able to out build, out educate and out innovate every other country. The President proposed, the following as his Plan for Recovery, The American Jobs Act (cost: $245 billion in tax cuts and $202 billion in spending = $447 billion total):

·       Tax Credits for companies hiring new workers – this gets people in the door, trains them to be competitive for the job and lowers the cost to companies. The Bureau of Labor Statistics said a $10,000 tax credit would create 6 million jobs. So the President’s $4,000 credit should per Moody’s Analytics create 1.9 million jobs. The Act would cut payroll taxes for the company and employee in half which should put $1500 in the pocket of the average middle class worker in a year. 

·    Infrastructure Investment – Providing funding for transportation, schools and clean energy projects. The Bureau of Labor Statistics says a $200 billion a year investment would create 2 million jobs and reduce unemployment by 1%. Economists say the government has to do it; nobody else will.

·     Unemployment will be extended for another year. And, at no additional cost to Americans, provide targeted assistance for the long term unemployed. There are over 6 million Americans that have been unemployed for 6 months or longer (Rutgers University reported that 8 out of 10 have been out of work for 6 months or more, half for more than 2 years; half of those finding a job got less money and a third saw a drop in benefits). An example of this proposal is Georgia’s Work Program. It gives 8 weeks of training to an employee at no cost to the participating company (unemployed volunteer for a job to find out if the job fits). They say 24% of participating workers were ultimately hired by the companies and 60% found work elsewhere.

This Act is being broken down into smaller bites so we’ll have a better understanding of what the money will be used for. I heard on October 21, 2011 that the portion ($35 billion) for teachers, police and firefighters to be paid for by ½ % tax increase on millionaires did not pass.  

Years ago our tax dollars paid for police, fire and ambulance services. Now you pay for 911. In some places people pay for fire control while others have volunteer fire departments (I heard on a Duracell commercial that over 70% of our country’s fire departments are voluntary; sure hope your neighbors like you. Some places are charging you fees for fire services. Unfortunately, if you haven’t paid the fees the fire personnel will stand around and watch your place burn) and most are paying for ambulances. Whoopi Goldberg got a bill for the ambulance that took her mother less than one mile away. The bill showed $1700 to get to the house and $76 for mileage. Yes, we all know that a medical team is in the ambulance and it’s not just a limousine to the hospital. Although this is a reason why health care costs so much, my point is that our tax dollars no longer pay for things it used to and I’d sure like to see more paid firefighters.

It’s ridiculous, a lousy ½% on 300,000 people and it didn’t pass.