The Government Needs to Take the Reins In Job Creation

It is time for the government to take more direct action to stem the tide of joblessness that is hampering the recovery and demolishing the hopes of millions of unemployed workers.

A tax credit to encourage employers to create new jobs or extend hours worked is just the kind of direct subsidy that worked so well with the cash-for-clunkers program. That was about cars. This is about jobs and people, an unquestionable priority. The moral imperative to act aggressively is clear.

One proposal would provide companies with a $4,000 credit, paid out over two years, for every employee hired. Another proposal by the Economic Policy Institute, a research group, would provide a two-year credit worth twice the first-year payroll tax for each new hire. This could amount to several thousand dollars, depending on the salary of the new employee.

Tax credits would add another weapon to the government's arsenal in its battle against joblessness. The American Recovery and Reinvestment Act is providing billions of dollars in direct grants for shovel-ready jobs to rebuild America's highways and bridges and to jumpstart efforts in alternative energies like wind and solar power.

Tax credits could encourage job creation in industries that do not now receive money under the economic stimulus.

Recent signs of recovery and those who say the recession is over are cold comfort for the millions who are still searching for work or have stopped looking. For many, their world is bound by paying the bills and raising families.

As New York Times columnist Bob Herbert wrote recently, "America needs jobs now, and if the economy on its own is incapable of putting people back to work - which appears to be the case - then the government needs to step in with aggressive job-creation efforts. "

Franklin Roosevelt knew what was at stake. The man who helped launch a massive public works program told a Depression-burdened nation in his first inaugural that "Our greatest primary task is to put people to work," a job he compared to the "emergency of a war."

We could all take a lesson from FDR.

 

Comments

[drgrph]

I believe you are missing the point why job creation has been poor. It is a fact that the President hates small business. That's right, hates small business. (An obligatory nod to Congressman Grayson)

Seriously, the President doesn't want job recovery unless, maybe, there's a union involved. Upon what do I base my belief? The so-called Stimulus Act. Show me where any consideration was given to small business. No tax reduction or credits, no easing of regulations - nothing.

On the other hand, we had more that enough money and interest to act like fascists and acquire Government Motor and Chrysler. Then effectively hand them over the unions instead of allowing the real owners, those who had invested in their stock), reap the just due.

This wholly partisan President has effectively locked most Americans and the businesses they work for out of what used to be considered "the American Dream". Now we must live "the American nightmare". Maybe my Grayson imitation was on the mark after all.

[heiko]

I don't think that you've investigated this at all. Do that then come back.

[SonofLiberty1]

How many "Small" businesses can create many jobs at say $30,000. salaries?

[heiko]

We need to manufacture something better than anybody else. But, even at that, if capitalism is to survive in this country, then we must become more of a throw away society than we already are. I think that a great many people would love to be the best consumers they could possibly be, if they had the cash. That's what is needed a balancing of wages. This is a big problem for corporate America. They need us to spend, only they don't want to provide us with a wage that will perpetuate, the constantly and consistantly, buying of the newest whatever.

[pterack5]

ask your local chamber of commerce about job creation. . .in fact ask them anything about working people. . .they will probably call the cop's. . .

[humanbeing-rick]

Remember: "Our greatest primary task is to put people to work," a job he compared to the "emergency of a war." - We could all take a lesson from FDR.

The proposals suggested here to create jobs would be a much better use of our money than bailing out elitist bankers and executives. These make true sense for American prosperity.
We need a grass roots economic recovery, for the working class people of America, for the middle class that has suffered for so long.
We should not allow out government to cater to the whims of the tycoons and executives that have brought us to the brink of disaster.

[apexfork]

Senator, please explain the rationale that you imagine a business owner might use to increase his or her hiring due to the programs you propose were in place.

I am an employer, and your programs, as I read them, would be of no use to me and would *not* entice me to hire anyone.

[OneTop]

Isn't the only thing that spurs you to hire an additional worker -- a demand for your goods or services that you cannot fill with your current workforce ?

[humanbeing-rick]

Gee, how about the fact that it provides incentives for new hires?
How about the fact that it could help employ some of your fellow Americans who are in distress?
What would you propose instead?

[SonofLiberty1]

Apexfork,

Perhaps you would like to trade places with me...my job was outsourced.
Maybe it's time that you either take a paycut of lose your job.

THEN AND ONLY THEN, MR "EMPLOYER" WOULD YOU UNDERSTAND!

[SonofLiberty1]

Of course, Apexfork, you might have the guts to take a pay cut or

You could post the name of your business so the rest of us can decide

NOT to give you our patronage....

[balancedsolution]

Why doesn't the government do a lot of things?

Set up a committee to root out corruption and no-bid contracts, and have laws on the books that state if you screw the government you will do this amount of time in federal jail, plus you will be forced to pay this amount in damages.

The government, which is of the people....AND FOR THE PEOPLE, haven't done anything yet to protect us from financial predators.

Root out corruption and greed and you'll save the taxpayers billions of dollars.

Stop having the Military dictate budgets. Sometimes it's ok to cut budgets. The military spends money so they can get just as much for the next year or more. If they dont really need it, than save that money. Have Governmental Incentives on Saving Taxpayer funds.

#2. Make Alternative Fuel Sources a PRIORITY. - Get off OIL and get out of the MIDDLE EAST. LET THEM FIGHT SOMEONE ELSE.

#3. TERM LIMITS to prevent greed and corruption within government. It's our only way!

[Soulsurfer]

#4 Stop hiring H1B visa immigrants to work for small pay.

#5 Hire bodyguards to protect against disgruntled defense contractors.

[SonofLiberty1]

We already have term limits...

THEY ARE CALLED

ELECTIONS!

[Queenhuh]

Sen. Specter, why hasn't the federal government ever created an institute of learning for those who need more skills? Education and technical skill building is an expensive "business". Most of us can't afford it. So we end up in minimum wage paying jobs and have to hold 2-3 of them to keep body and soul together. What about us oldies? Women such as myself in our fifties can no longer make use of a liberal arts degree and returning to college has proved absolutely worthless because like it or not, there IS huge age discrimination factor out there. I used to work in the health "care" profession, but guess what? It's for profit, and we were constantly understaffed and over worked which resulted in less quality care for patients. This is one reason for the huge turnover in the health care field.

Most European countries have job training for every age group and then assist in job placement. We are so very third world.

[bweiss]

FDR basically created a government run jobs program that provided the essential infrastructure which allowed the Nation to build an American world economy that resulted in the living standards we've enjoyed since the 1950's. Now for the most part that infrastructure is in declilne. Bridges, dams, Interstate Highways, Airports, Shipping Ports, Railways, and on and on, are way past their engineering life span and in many cases represent a disaster waiting to happen. Now, unless Bank of America or Goldman Sachs is going to step up and provide a jobs program to repair and rebuild all that then the only other choice is for the government to do it. It was the government that created it all in the first place. And a quick check of history shows that it was the Republicans who whined and cried about FDR's New Deal, called is socialism, put on the tinfoil hats and claimed it would be the ruin of the Nation.

[slithers]

no! please stop trying to help. you just make things worse.

[NoElephants]

Yeah, like FDR made things worse, right? Oh that's right, he caused the depression didn't he?

[Rmath]

"Governments never have, do not and never will be able to provide efficiently and effectively run programs".

Unless of course they're lining the pockets of their defense contractor friends.

[humanbeing-rick]

I reject the idea that government never had and never will run efficient or worthwhile programs. You are ignoring history with a statement like that. The government is us, it is our democracy, it is our taxes, it is our representatives. We the people compose our government, and we the people need to participate to make it work for us properly. The lazy people who let other people run their government have no one else to blame but themselves.

[SonofLiberty1]

When Republicans campaign for office they always run on the same mantra... GOVERNMENT IS BAD AND IT'S TIME TO GET GOVERNMENT OFF OUR BACKS... Now we see the result of 8 years of no regulation and an "Anything Goes" attitude plus having to stomach a President who loves the idea of ... Giving our jobs to foreigners... That's worked out real well, hasn't it?

[SonofLiberty1]

When Republicans campaign for office they always run on the same mantra... GOVERNMENT IS BAD AND IT'S TIME TO GET GOVERNMENT OFF OUR BACKS... Now we see the result of 8 years of no regulation and an "Anything Goes" attitude plus having to stomach a President who loves the idea of ... Giving our jobs to foreigners... That's worked out real well, hasn't it?

[sloLes]

People seem to be forgetting the most basic realities. No country can lose three or four wars and prosper! We have lost in Aghanistan, after achieving initial victory. We turned victory in Iraq into defeat. Some will argue, but the reality is that Iraqis are more interested in their relations with Iran than the US. After we're gone, our influence in Iraq will look like the hole left in a bowl of water by our finger. We lost in Lebanon. Even the Israelis recognized defeat with their Winograd Report. And we're losing the war on terror. Just look at nuclear Pakistan disintegrate. And the dollar has lost another fifteen percent of it's value since the big meltdown last fall.

Folks, we're on a losing streak! Sending more troops to Afghanistan may hold off defeat, but it is pissing away resources that are needed more elsewhere. Gen. McChrustal is focused upon winning his minor league game in Afghanistan, while we're losing in nuclear Pakistan, where Al Qaida now is based.

BTW, as people are pointing out, we haven't really put our bailout money into projects and ventures that will prepare us for the coming future. Instead, we have enriched the failures of the past. Nobody is paying any attention to the export of our software industry. This is the brains of 21st century goods and services. It's at the heart of every modern product or service. And it's leaving the American economy hollow!

[jayman54]

What is this $2k? Like an employer is going to hire an employee at a yearly cost of $35k to save $2k in tax credits? Employers hire employees when the financial proposition produces a profit, not because some politician is offering up $2k. This is just a silly vote getting scam.

[middleoftheroad]

agree100% I'm going to hire more people when I have sales. why do I need them now??? where is our stimulus money Arlen? 2000 tax credit is nothing. the stimulus was wasted!

[charleshugh]

What the economy needs is confidence.

With confidence comes business expansion and job growth.

The Bush Administration and now the Obama Administration have done nothing to make Americans more confident about the future.

The unspoken question Americans are asking is: "Why should I be confident in the future."

Confidence doesn't come from tax credits or government bailouts. It doesn't come from needed reforms in healthcare.

Our leaders have to tell us what forces will be driving the world economy in the future. And they need to tell us how we are preparing for that future.

Currently, our economy is rudderless. Where are we going?

In my view, the president should focus much more attention on energy and education. Solving these problems will make us more confident about our future. Without confidence there will be no economic revival.

[simonmrasi]

Here Here!!

[SonofLiberty1]

Look,

Fact is that we've all been taken for a ride by the Republicans...

Heath care costs have gone astronomical and are still rising...

The financial industry went beserk and melted down of their own accord taking American jobs with it.

Additionally, we've been losing jobs through the use of H 1B Visas and Outsourcing.

Not having a job is dangerous to your health...and to America.

No more Gay crap either, sorry but it isn't going to help the majority of people get better healthcare or give us jobs..it's only ok for few not the many.

[transparent]

Better idea, Senator Specter:

Raise the tax rate and close loopholes for businesses that reach a certain profit/income level...then, reduce the tax by a certain percentage for every 10 employees they hire. That way, the money isn't coming from taxpayers and it would be a true sticks and carrots approach rather than just carrots.

Also...single payer would eliminate workman's comp. Start there.

[thedirtman]

A $4,000 credit every employee hired, or provide a two-year credit worth twice the first-year payroll tax for each new hire. Arlen Specter is the man today. I would even go one better and offer tax credits for marketing new technology.

Some people care about America, and some people care about party politics. Arlen, apparently, cares about America.