Posted on 12/02/2009 8:31:48 AM PST by Thebaddog
President Obama took office at the height of the worst downturn since the Great Depression.
Indeed, on Monday the nonpartisan Congressional Budget Office issued a report that estimated that the Recovery Act raised GDP in the third quarter by between 1.2% and 3.2% relative to what it otherwise would have been, and increased employment between 600,000 and 1.6 million.
Despite these positive developments, the job market remains very weak. The dramatic decline in economic activity last fall and winter led to soaring unemployment. Furthermore, the job losses were deeper than would be expected just on the basis of the behavior of GDP.
Given the budget deficits this administration inherited, it is critical to leverage scarce public funds. More fundamentally, when businesses seem hesitant to hire and productivity is surging, we need to harness the private sector, bringing large and small firms in off the sidelines to boost job creation. One idea is to give direct incentives for homeowners to retrofit their homes to improve energy efficiency.
It could help both stimulate the manufacture of retrofit products and increase construction employment. Others have suggested incentives to help small businesses invest, grow and create jobs. This could include measures to restore the flow of credit for small businesses and targeted tax cuts. In these types of ways, a moderate and targeted investment by the government might be leveraged into significant employment gains and purchasing power by small businesses. Direct government investments can also play an important role.
All these ideas are just that—ideas to be discussed, refined and evaluated. Action on any measures to spur job creation will be worked out with Congress after careful study, and will be done in a fiscally responsible way.
(Excerpt) Read more at online.wsj.com ...
Anybody for a quick fix, like a tax break?
What BS, the first thing they did was start digging the hole deeper.
Tax break will not work!!! We have over supply and over production. That is just more of digging the hole deeper.
I'm still trying to decide whether my ears were playing tricks on me, but this am on WPTF (AM-680, Raleigh NC) the host interviewed an econ professor from Duke who actually proposed that as the first of three measures he would take, if he were president. The next one was reducing government expense.
I really liked what I heard, but like I say, I'm still trying to decide if I really heard it.
Nonsense. What we have is an underdemand and underconsumption problem, both of which would be fixed by higher retained personal earnings.
What a load of bovine feces....
The real answer is to kill HCR as quickly as possible and Cap and Tax as well. Ultimately, it could be the mid term elections next year that put things back right by removing Pelosi hopefully. Without these changes, who can predict their expenses?
http://www.usdebtclock.org/
Hey. The American people voted in the democrats in 2006. Before that, everything was fine. They were in charge of spending ever since - 3 years worth! People got what they voted for.
Maybe next time they'll think twice before pulling that lever for a democrat.
Can't. The democrats have been spending money for 3 years now, and Oboma took our future paychecks, our kids paychecks, and our grandchildrens paychecks. There's nothing left for a tax break.
If they were to eliminate most of the welfare programs, that would get people off their butts to do something.That would be more than motivational, and it would put money back into the pockets of the producers. That's about the only reasonable option left.
You are correct.
Anyone with a lick of common sense knows what’s going on here.
The government actions have caused demand destruction. If you are trying to gauge your business activity for the future, as any good business would do, you know what’s coming in 2 years or 5 years. It is mathmatically impossible to thwart the hyperinflation of the future. Right now velocity is holding it back. But for how long?
No one has any confidence in the ‘progressive’ government we now have.
Good point!
We do not have enough producers to take care of the looters and moochers out there.
And then truncate further ‘stimulus’ spending, yep. I think we can predict that, if the shadows of things to come do not change, we’re all bound for Ebenezer’s fate: unloved, in paupers’ graves.
Check out the brilliant job creation scheme thought up at Michigan State University.
As near as I can figure we don’t have enough unemployed people in Michigan so we need to bring in more aliens with an agreement to attract foreign investors so the aliens will have jobs.
Jobs Americans aren’t allowed to do?
http://www.snopes.com/politics/obama/physics.asp
LOL oh geeze.
BWAAHHHAHAHAA!!!sure...this must have this Congress confused with another.
BWAAHHHAHAHAA!!!sure...they must have this Congress confused with another.
A little research on CHRISTINA ROMER would alert you to just how dumb she actually is, she at one point was just a normal somewhat rational academic economist, but now has become just another slug in the gut for this economy. Plus she is a fatazz!
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