Obama plan 'could create 4m jobs'
US President-elect Barack Obama says urgent action is needed on the economy, and his $775bn (£509bn) stimulus plan could create up to four million jobs.
Mr Obama, who takes office in two weeks, wants to cut taxes and create jobs through increased government spending on public works projects.
"It's not too late to change course, but only if we take immediate and drastic action," he said.
The US unemployment rate is 7.2%, after 524,000 jobs were lost in December.
Recession fears
The number of job losses last year was 2.6 million, the largest since World War II.
The figures, released on Friday, heightened fears that the US is entering a long period of recession.
The president-elect published a detailed analysis of his recovery plan by his economic advisers, who said it could create up to four million jobs by the end of 2010.
Credits: BBC
1 comments:
The job-creation numbers are impressive, but I hope the other details of the plan don't get ignored because of they don't make great headlines. I think we need the stimulus plan, and it needs to be very large, but Congress needs to make sure that it continues providing benefits in the long term, not just a shot in the arm for the short term.
The infrastructure spending will help keep the economy growing in the long term, but it would also be helpful if Congress could find a way to encourage businesses to invest in infrastructure as well. Possibly they could do this by making sure there are fewer unnecessary regulations that dissuade businesses from making those investments. There seem to be many businesses that have money to invest, but not as many that are actively investing in any forward-thinking enterprise. Hopefully Congress can find ways to get that money flowing.
The tax cuts on businesses would certainly be helpful, especially on small businesses or businesses in sectors where there is potential for significant job creation. We need the businesses like that to be able to resume their traditional role as the engine of our economy. The government can certainly assist the process getting started, but businesses will actually provide the growth.
I think the aid to the state governments is also needed, because the programs that the state governments support are needed for sustained growth. For instance, the state governments support schools and public workforce training programs. It is important to make sure both of those programs survive to make sure we are able to provide workers for whichever sectors of the economy are providing the jobs.
I recently saw that the Friends of the U.S. Chamber of Commerce is working with Congress to make sure that they take these things into account when they are designing the stimulus package. They have a petition that I encourage everyone to sign to make sure Congress knows that we want the economy fixed - but we want it fixed for the long-term - http://www.friendsoftheuschamber.com/takeaction/index.cfm?ID=76
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