Editore"s Note
Tilting at Windmills

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November 30, 2009

NEXT STEP ON JOBS.... In recent weeks, we've learned that the House is planning to move forward on a new jobs bill by Christmas; the Senate is putting together a plan of its own to be passed early in the new year; and while the White House's plans are less clear, President Obama is hosting a "summit" on jobs later this week.

But, while there's a much-needed focus on job creation among leading policymakers, not everyone is on the same page.

As Democrats renew their push to create jobs, they are at odds over the timing, cost and scope of additional measures, with the White House's concern about high budget deficits pitted against the eagerness of many in Congress to spur hiring before next year's elections.

After months in which his focus has been on a health care overhaul and foreign policy issues, President Obama will pivot later this week to the economy, convening a White House forum on Thursday to discuss ideas for job creation and then traveling to Allentown, Pa., for his first stop on a "Main Street Tour."

Congressional Democrats return from a holiday break intent on packaging new proposals for tax incentives and construction projects to promote employment, with the House, where every member is up for re-election next year, on a much faster track than the Senate or the White House.

Lawmakers seem intent on doing something, though there's disagreement on how much investment, how it would be paid for, and whether it should be paid for. And with the White House apparently shifting its attention to deficit reduction -- a mistake, to be sure -- the task becomes that much more difficult.

Sen. Chuck Schumer (D-N.Y.) added, "There's sort of an anomaly here -- people want us to do stuff on jobs but they don't want to see a lot of government spending."

You don't say. The public's demands may frequently be contradictory, but that's all the more reason to focus on doing what works -- folks may say they want less spending and more deficit reduction, but when push comes to shove, they want a job more.

With that in mind, here's hoping Paul Krugman's latest piece gets circulated far and wide among policymakers.

If you're looking for a job right now, your prospects are terrible. There are six times as many Americans seeking work as there are job openings, and the average duration of unemployment — the time the average job-seeker has spent looking for work — is more than six months, the highest level since the 1930s.

You might think, then, that doing something about the employment situation would be a top policy priority. But now that total financial collapse has been averted, all the urgency seems to have vanished from policy discussion, replaced by a strange passivity. There's a pervasive sense in Washington that nothing more can or should be done, that we should just wait for the economic recovery to trickle down to workers. [...]

So it's time for an emergency jobs program.... All of this would cost money, probably several hundred billion dollars, and raise the budget deficit in the short run. But this has to be weighed against the high cost of inaction in the face of a social and economic emergency.


Steve Benen 8:00 AM Permalink | Trackbacks | Comments (11)
 
Comments

Message to Obama: Fire Summers. Hire Krugman.

Posted by: sjw on November 30, 2009 at 8:13 AM | PERMALINK

I half agree with sjw @ #1 - fire Geitner, Hire Krugman.

Just fire Summers. Period.

Posted by: bcinaz on November 30, 2009 at 8:23 AM | PERMALINK

I don't think President Obama or the Democrats are going to get anywhere until they knock the remaining pins out from under the Purity Driven Wingnuts.

In my fantasies, I hear the President at the State of the Union, telling Congress, the Nation and the World that the United States is going to embark on deficit reduction by raising taxes to pay for the stuff the previous administration did not pay for beginning with Iraq. Afghanistan. Medicare Part D.

We (on the left ) have to force the Republicans into corners, explaining every Sunday why they were so profligate during Bush's 8 years and such hypocrits now. Really, make the argument about them!

Posted by: bcinaz on November 30, 2009 at 8:31 AM | PERMALINK

As Democrats renew their push to expand the war in Afghanistan, they are at odds over the timing, cost and scope of additional troop and equipment buildup, with the White House's concern about high budget deficits pitted against the eagerness of many in Congress to continue lining the pockets of the military/industrial complex.

Posted by: terraformer on November 30, 2009 at 8:38 AM | PERMALINK

Reading your post I just now came upon an idea (which probably isn't original, and most certainly contains many flaws and unintended consequences, and would be vigorously and successfully shot down in any case): we should disincentivize war making, and simultaneously fund such adventures as are deemed necessary, by increasing taxes on those providing supplies and support during a time of conflict (not strictly declared war). Such a tax should be a blanket cap on profit, and should ensure employment compensation is not means for an end run.

Posted by: jhm on November 30, 2009 at 8:52 AM | PERMALINK

America at sea...

Benen:And with the White House apparently shifting its attention to deficit reduction -- a mistake, to be sure -- the task becomes that much more difficult.

A Democrat is president...

And so Big Media is naturally focusing on the deficit. And since Big Media controls the software running in John and Jane Dough's head, the Dem president needs to get out in front of this stupid wave and surf it. Not because the growing debt is a pressing problem, but because Big Media says it is so.

You might argue this is a cowardly thing for the Administration to do. I argue instead it is a shrewd and wonderfully cynical thing to do. Why? Because the country is basically ungovernable.

And when a country becomes ungovernable, what matters isn't governing itself but the perception of governing. Obama likened the nation to a great ocean liner that he was trying to nudge into a new direction. That's only nominally true. The ocean liner isn't "great" anymore. It isn't churning along under steam. Rather the engines are down and it is coasting to a standstill. Two helms are screaming at each other and "rowing" madly in two different directions...

All Obama really can do then is try to nudge the oaring a bit, and play his captaincy as shrewdly and cynically as possible to get reelected.

Posted by: koreyel on November 30, 2009 at 9:44 AM | PERMALINK

Kore, we're not arguing that its cowardly, we're arguing that it will kill his Presidency,

In 2012, if Unemployment is at 4-6% and Obama has done nothing about the deficit, then he will win. If Unemployment is at 8-10%, and he's paid down half the national debt, he will be massacred.

We're not the ones who are clueless about the realities of politics here.

Posted by: soullite on November 30, 2009 at 9:50 AM | PERMALINK

Unemployment is getting out of control.

How on earth can we justify spending an additional 35 billion in Afghanistan (minimum cost per year for the 35,000 new troops)?

Waging war is ruining our economy. Don't we get it yet? We simply cannot afford the huge defense expenditures. The return on tax-payers' dollars is
very suspect when it comes to our mis-adventures in the MidEast.

Posted by: Tom Nicholson on November 30, 2009 at 10:03 AM | PERMALINK

Koreyel: You didn't mention the hurricane force winds of international power and finance that are blowing from the port side and we are about to be rolled over. I think the captain will go down with his ship along with the rest of us.

But I'm glad to see Chuck Schumer is reading my posts.

Posted by: anomaly on November 30, 2009 at 10:12 AM | PERMALINK

My wife lost her job Oct. 31st when they eliminated her position to save a few bucks. She has a decade of experience, fantastic references, and has sent out two dozen resumes over the past month, many for jobs for which she's over-qualified.

She's had one phone interview. That's it.

It's simple, really: Voters may say they care about our national debt, but they'll forget that worry quickly once they have no food, utilities, or even a place to live.

This nation needs work. Lots of it. And the time is now for the gov't to help create some.

And, quite frankly, anyone who thinks the deficit is more important than creating jobs is a delusional fucktwit who should be ignored forever. Period.

Posted by: Mark D on November 30, 2009 at 10:15 AM | PERMALINK

Krugman can't even keep his subject context correct. He talks about college graduates having issues then chats about having a ditch-digging jobs program. What a complete and utter moron.

What doesn't he understand about small business creating jobs that escapes him. Wow...

Posted by: dude on November 30, 2009 at 3:48 PM | PERMALINK
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