The Washington Monthly

November 17, 2009

A 'SIGNIFICANT' JOBS PACKAGE?.... For the last several months, it seemed there was no political appetite for additional federal investment to help the economy. The recovery bill approved in February had helped prevent an economic calamity, but Democratic leaders feared the public would recoil if they took on another effort.

Those attitudes seem to be changing quickly. Last week, Senate Majority Leader Harry Reid (D-Nev.) signaled to his caucus that he's eyeing a new job-creation bill. A few days later, President Obama announced plans for a jobs summit at the White House in December.

And Roll Call reports today that leaders from both chamber are "gathering ideas and building momentum for what could be a significant new jobs package" early in the new year.

[R]esistance among Members to a significant new economic package appears to be fading.... [T]he continued uptick of the unemployment rate -- now at 10.2 percent -- has renewed the once-taboo idea of another stimulus.
"While Members are definitely concerned about spending, there also is a recognition that unemployment is over 10 percent, and Members want to be able to say they are doing something on unemployment and jobs," one House leadership aide said. [...]

One idea that continues to get talked about is a $500 billion transportation reauthorization bill, which is up for renewal anyway and would produce tangible projects and jobs that are easy for voters to see and lawmakers to tout.

The same article noted that congressional Republicans will continue to push for "several hundred billion in tax cuts," paid for through spending cuts. Since this is insane, congressional Democrats have shown no interest in the idea.

The political angles to this are pretty obvious. Republicans will insist that federal investment in the economy is always a bad idea, and argue that the stimulus package was a "failure," all evidence to the contrary notwithstanding. A jobs bill will be labeled "Stimulus II" (or "Stimulus III," if you count Bush's failed efforts in early 2008), in the hopes of creating a public backlash.

But there's an equally obvious flipside: the public backlash against extended, rising unemployment rates is much more problematic than Republicans, Fox News, and talk radio whining incessantly about investing in the economy.

As for the timeline, most of the reports point to a "early 2010" timeframe, but the House -- which is left to wait for the Senate to work on health care and energy policy, which the lower chamber have already passed -- may act even sooner. Indeed, there's at least one report suggesting House Democrats may pass a jobs bill "by Christmas."

—Steve Benen 8:30 AM Permalink | Trackbacks | Comments (9)

Comments

Here is a very clear case that doing nothing would be disastrous for Democrats and Obama. Of course, Republicans will wail and cry 'socialism' yet again--they always do--but this, like health care, is something that needs to be done, and quickly.

Perhaps another press conference by Obama is indicated here, if but to provide a cogent, thorough explanation about why cutting spending and fears of a deficit--both Republican memes so ingrained in the American psyche--are not the answer, and why they would make things worse. Time to use the bully pulpit again.

Posted by: terraformer on November 17, 2009 at 8:35 AM | PERMALINK

Republican 'tax cuts funded by spending cuts': where were these folks when we were spending a billion dollars a week waging war in Iraq?

The Republican Party: Home of the Criminally insane. . .

Posted by: DAY on November 17, 2009 at 8:43 AM | PERMALINK

First step toward any improvement in the American condition: Charge all Republican Senators with treason and put them in Gitmo.

After that enact changes to help America.

Posted by: madstork123 on November 17, 2009 at 8:47 AM | PERMALINK

Steve: Â¨....Since this is insane, congressional Democrats have shown no interest in the idea.Â¨

Unfortunately, many insane proposals have become law lately!!

e.g.
Â¨On Nov. 6, President Obama signed the Worker, Homeownership and Business Assistance Act of 2009 into law, extending unemployment benefits by 20 weeks and renewing the first-time homebuyer tax credit until next April.

But tucked inside the law was another prize: a tax break that lets big companies offset losses incurred in 2008 and 2009 against profits booked as far back as 2004. The tax cuts will generate corporate refunds or relief worth about $33 billion, according to an administration estimate.Â¨

http://www.nytimes.com/2009/11/15/business/economy/15gret.html?_r=1

The article mentions home builder companies, partly to blame for the current crisis as they built and built and built, receiving hundreds (!) of millions (!) in tax paybacks, even though they have plenty of cash available and do NOT intend to start employing more people.

$ 33 billion in tax refunds to companies which do not need them. The article also calculates the return on lobbying money invested!

Posted by: carol on November 17, 2009 at 9:05 AM | PERMALINK

Charge all Republican Senators with treason and put them in Gitmo.

...with military tribunals, so you can convict them with hearsay evidence behind closed doors, and keep them locked up forever even if they are found innocent.

Posted by: Danp on November 17, 2009 at 9:25 AM | PERMALINK

Unemployment is high, but so is the median length of time "out of work." More people are unemployed for longer periods of time.

It's the latter reality that is getting folks jittery.

Posted by: Tom Nicholson on November 17, 2009 at 9:33 AM | PERMALINK

Look, this is the Market speaking, your only god and the only power to truly make your life better or worse. I know you think you can get rich some day, just like the folks you see on the teevee, but it aint gonna happen.

Fact is, I don't really need too many of you people anymore, and I have been sorta wishin' y'all'd just go away. I got a ton of cheap prospects everywhere, and while I scrape up the last worth on this tired old planet, i just feel y'all have become just too picky, too proud, and to presumptuous for me to score much profit -- and heh heh heh, that's what its all about.

I don't know when you will ever figure it out. It probably don't matter any more if I just tell you: It's always been a matter of either I survive or you survive. I got all of you I need working for me now, the rest of you can't stop it any more, and will eventually just hafta give up.

So good luck with the "Jobs summit" y'hear?

Mebbe they'll come up with a jobs commission that'll study-up the problem for a few months, and then a "jobs commission report" in the summer. Encourage people... give 'em hope...

Just keep nibblin' at the breadballs on those hooks for awhile. I got plenty others...

No chance in hell you'll drive a stake thru my heart with a guaranteed right to employment in this country -- in your dreams, chucklehead!

Posted by: neill on November 17, 2009 at 10:12 AM | PERMALINK

With the federal deficit at “a record $1.4 trillion,” a plan for reducing long-term deficits will be “a key component” of President Obama’s State of the Union address. “It is foremost on his mind and the mind of the economic team,” White House Chief of Staff Rahm Emanuel said yesterday. THINK PROGRESS

Posted by: Rick on November 17, 2009 at 10:27 AM | PERMALINK

The best way to reduce the deficit is to put people to work so they are paying taxes rather than using them. Obama and the Democratic leaders need to think back to when they were most popular. That was when they were actually passing legislation that regular people could see as helping.

Posted by: Th on November 17, 2009 at 10:46 AM | PERMALINK