Economists Say Obama’s Job Bill ‘Grasping at Straws’
President Barack Obama’s job-creation program could produce a short-term political boost, but it’s unlikely to significantly stem job losses and reduce the unemployment rate anytime soon, according to economists.
“People are out of work. They are hurting. They need our help. I want a jobs bill on my desk without delay,” the president said during his State of the Union speech.
But even he acknowledged, that “the truth is, these steps won’t make up for the 7 million jobs we’ve lost over the last two years.”
Specifically, the president wants to give a tax break to businesses that hire workers, eliminate the capital gains tax on small business investments and use $30 billion in Troubled Asset Relief Program money to encourage community banks to lend to small businesses.
“He’s trying to turn his microeconomic policies into some macroeconomic solution. He’s grasping at straws,” said Peter Morici, an economist at the University of Maryland.
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