Obama: We Can't Have Job Growth Without Health Care Reform

WASHINGTON — The Obama administration is considering steps to ease the burdens of laid-off workers, including possible extensions of unemployment and health benefits, officials said Saturday.

The administration has stopped short of calling for a second economic stimulus package to augment the $787 billion measure approved this year. But with the jobless rate continuing to climb, President Barack Obama said Saturday he is exploring "additional options to promote job creation."

Administration aides said possibilities include:

_extending enhanced unemployment-insurance benefits beyond Dec. 31, when they are set to expire.

_extending a tax credit for laid-off workers who buy health insurance through the COBRA program. That program allows workers to keep their company's health insurance plan for 18 months after they leave their job, if they pay the premiums.

_extending a tax credit for first-time home buyers. This credit also is set to expire soon.

The administration has discussed these possibilities with congressional leaders, officials said, but no decisions have been made.

White House economic adviser Lawrence Summers expressed interest in these ideas in an online interview with the Atlantic magazine. "I don't know what the term 'second stimulus package' exactly means," Summers said. "We certainly need to continue to support people who are in need, whether it's unemployment insurance, or a COBRA program that for the first time provides that people who are laid off get supported in being able to maintain their health insurance."

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In his weekly radio and Internet video address Saturday, Obama said his proposed health care overhaul would create jobs by making small business startups more affordable. If aspiring entrepreneurs believe they can stay insured while switching jobs, he said, they will start new businesses and hire workers.

"I hear about it from small business owners who want to grow their companies and hire more people, but they cant, because they can barely afford to insure the employees they have," Obama said. "One small business owner wrote to me that health care costs are and I quote 'stifling my business growth.' He said that the money he wanted to use for research and development, and to expand his operations, has instead been 'thrown into the pocket of healthcare insurance carriers.' "

Dismissive Republicans blamed the continuing job losses on Democratic policies and said the president's health proposals won't help.

The unemployment rate rose to 9.8 percent in September, the highest since June 1983, as employers cut far more jobs than expected. The government reported Friday that the economy lost a net total of 263,000 jobs last month, from a downwardly revised 201,000 in August. All told, 15.1 million people are now out of work, the Labor Department said, and 7.2 million jobs have been eliminated since the recession began in December 2007.

Obama said he has met people "who've got a good idea and the expertise and determination to build it into a thriving business. But many can't take that leap because they can't afford to lose the health insurance they have at their current job."

Small businesses create many of the nation's jobs, Obama said, and some have the potential to become big companies.

Obama praised the Senate Finance Committee for crafting a health care bill that includes many of his priorities. Small businesses could buy health insurance through an exchange, he said, "where they can compare the price, quality and services of a wide variety of plans."

The government would subsidize health insurance for many businesses and individuals, the president said.

In the weekly Republican address, Rep. Candice Miller of Michigan said the original Obama-backed economic stimulus package fell far short of its goals. She criticized a House-passed energy bill that would set limits and costs on greenhouse gas emissions. The plan, which the Senate has not taken up, "would increase electricity bills, raise gasoline prices and ship more American jobs overseas," Miller said.

She called for deeper tax cuts for small businesses so the economy can get back on track.

"Washington Democrats' job-killing agenda makes me think they're living on a different planet from the families living in America's suffering heartland," Miller said.

___

On the Net:

Obama's address: http://www.whitehouse.gov

Republican address: http://www.youtube.com/RepublicanConference

Comments

[JacquesS]

Small business owners today are at the total mercy of the monopolistic insurance companies. One way or another a small business employee needs health insurance. If it's paid for or subsidized by the business it is that much less compensation that might have to be paid. If it's not, the employee has to pay for it on his/her own or is "subsidized" by everyone else at the emergency room. In theory, every conceivable tax or expense hinders new job creation (including unemployment insurance, all federal, state and local taxes - even rent and phone bills! If a public option offers such a highly competitive rate that it is "unfair" to the insurance companies - imagine all the money that will be saved - and all the new jobs that will then be created.

[abbyrose86]

Our current health system is so negative for small businesses. It is deplorable!

Not to forget to mention, in a global economy, it makes US companies much less competitive.

Why oh why, don't people see this?

[Peter007]

Reagan took office in the middle of a recession and an economic crisis. His plan was to cut government spending and cut taxes and decrease regulations. His legacy was a booming economy without inflation.
Obama has the same situation but has chosen to go the opposite direction. The big difference is that Regan rhetoric was that American will be prosperous again while Obamas rhetoric is that the future will be full of hard times.

[Stefan Zeiss]

Its what is to be expected from a Socialist like Obama. Create a cycle of dependency on government social entitlements and thus no desire to work hard. This dependency increases government power and the result is a lame European nation where pissy whinny people spend very many years on unemployment that don't get up off their asses and make something of themselves. I am God blessed that my grand parents left Austria and Germany because I spent time there and I was disgusted with what I saw. Socialism just plain stinks!

[abbyrose86]

Actually, why not get some facts to back up your whine.

BTW, your grandparents probably left EUROPE before WWII....things have changed a little since then, over there. They have indoor plumbing now...and more a more modern infrastructure.

Whatever....arguing with people like you is like talking to the wall.

You know the internet, gives one the world at your finger tips...why not use it, to expand your base of knowledge?

[abbyrose86]

That's not really true.

http://www.nytimes.com/2008/01/21/opinion/21krugman.html

[mairs]

Reagan left us with a huge deficit, as did Bush. How did Bush's tax cuts work out for the country?

[Helzapoppin]

while I have no objection to any of these proposals, I don't see how they in any way help promote job creation.

[plaidsportcoat]

WHAT ABOUT FORECLOSURES?????

[Philclock]

Oh, Now I get it!

No health care reform, no jobs.

I'll reform, no more chocolate chip cookies!

Can I have my job back now, please?

[mikerobjohn]

Sounds like you have been listening to the wrong economists Mr. President!

[Watain]

This guy couldn’t sell a hot dog with best intentions.

[Angry1541]

it definitely suggests a certain level of disrespect for his African heritage...

[affidavit]

How about providing fiscal incentives to companies that keep their employees instead of laying them off?

[joecoolconservative]

Barry's above ideas are minor to say the least. These options do little if anything to address the job engine of this country - small business. Right now many small business owners will not hire new employees because they do not trust Obama on taxes, the economy, etc. Obama needs to propose ideas friendly to small businesses - oh wait, he can not do that since his radical left base would draw and quarter him for suggesting anything remotely business friendly. Enjoy the Great Obama Depression my lefty friends.

[affidavit]

It is my observation that people who refer to President Obama as "Barry" tend to be rascist. What do you think?

[Angry1541]

it's disrespectful if nothing else--regardless of whether is wife calls him that--the commenter above is not close enough to the President to call him what his friends call him.

[itys]

Tell me p1nhead, how is using someone's REAL name, how would that be classified as racist? I grant you it may be disrespectful, but not racist. Now personally, I pretty much don't like obama's politics. I am sure that he is a good husband and father, but he is not by any stretch of the imagination qualified for this position. And the sooner he leaves the better the country will be.

[Peter007]

You Obama cool aide drinkers will use any excuse to avoid discussing the issues. You're personal attacks on people that disagree with Obamas policies gives us a warm feeling knowing that Obamas supporters are nothing but empty suits. There is no substance, only rhetoric. Thank you for confirming this.

[jer9848]

I was in one of Oregons state parks.I noticed they had inmates clearing brush.Do inmates really need jobs?Just wondering.

[Zombeaver]

I think the solution is to cut taxes. That way, the unemployed, who have no income, can get a tax break this year. Foolproof! Also, giving the very wealthy another tax break will stimulate the job market. With all that extra money, the rich can give jobs to the unemployed - how many toilets, how many pools are going uncleaned in mansions all over the country? I've lost count. Plus, those workers, with their new tax breaks, will be able to keep more of their paycheck. That extra $1.25 per week addss up to $65 over the course of a year. Wow, they could put their kids into private schools.

[Peter007]

Money in the private sector is always more productive than in the public sector. The only people that disagree are politicians who want to get their hands on more money. The private sector creates profits which raises the level of wealth,. The public sector doesn't produce profits and can only redistribute wealth. GDP will remain flat.
The reason we are in a recession is because the private sector is not spending money because they don't have much to spend. The government has an unlimited amount of cash and yet they can't create jobs.
Every thing you said is political rhetoric and not economics. You are like a cheer leader at a football game.

[mairs]

Talk about rhetoric....

[sc300nc]

How do any of those three options create jobs?

The only way Obama knows how to create jobs is to drastically increase the size of big gov't, which will cause us all to pay higher taxes.

[jwredd]

You wouldn't know about job creation if you were hit over the head by an olympic stadium groundbreaking ceremony.

[ams23]

YOU RPEGS ONLY CARE ABOUT URSELF NO WONDER THIS COUNTRY IS BECOMING A BRAZIL LIKE STATE

[ams23]

itys I'm a Fan of itys 10 fans permalink
THEY HAVE A SMALL GOV'T IN SOMALIA PL MOVE THERE.