Obama’s American Jobs Act Program

In one of his most important speeches of his presidency, President Obama presented once again his “laser-like focus” on jobs. In 2009, and 2010 he had more important items to take care of – like a health care bill. Previous attempts by the Obama administration with any job stimulus have been disasters, but this new program is similar to previous efforts. So how will this bill generate different results? Isn’t that the definition of insanity?

The 2009 $800 Billion job stimulus program wasn’t as shovel ready as previously thought. The only thing shoveling was cow manure, but is to be expected from any government initiated jobs program. It has been previously reported, by Obama’s own economic team, each job created cost approximately $278,000 each. A good portion of the 2009 stimulus was not jobs related, it was mostly a stop-gap to help keep various state budgets solvent.

On the positive side, Obama has always been a great speaker. This speech was no different. It was full of passion and gusto, but lacked details. This speech was probably two years too late, and should have happened in early 2009. Obama’s speech was similar to previous speeches. It included the usual suspects:

  • Tax increases on the rich (you knew Obama had to state millionaires and billionaires)
  • Job works programs for union members (teachers and construction)
  • Rebuilding infrastructure (roads and bridges)
  • Extending the insurance for the unemployed for another year
  • Extending the tax cuts to working Americans
  • $4,000 tax credit to companies who hire out of work individuals for more than 6 months

Fortunately, the blaming of President Bush was finally missing.

Interestingly, Obama’s geen jobs initiative was nowhere mentioned in this speech. That’s because with no surprise it has so far been a big bust. In fact in August, three solar companies went bankrupt. Most notably Solyndra, who was paid a friendly visit by the FBI today. This is after $500 million in government guaranteed loans were given, and year after President Obama visited this company. Obama used Solyndra as a poster child for his green jobs movement. Oops!

Most of the speech President Obama stated Congress must “pass this jobs bill”, but yet no one knows the details? This sounds exactly like the Obamacare bill, and what Nancy Pelosi stated. Supposedly, in the next ten days we will get the details of the bill. President Obama states all of this spending (estimated around $447 Billion) will be deficit neutral. How the President exactly does this remains to be seen. The devil is always in the details.

Readers: What did you think of the speech? Do you think Obama’s American Jobs Act will get passed?

Comments

  1. says

    I would have like to see this about two years ago! Better late than never. I want to see what congress does with it. He certainly put the Republicans on the spot. Now it is their move.

  2. says

    I didn’t watch it but after reading the details, I wasn’t very impressed. It seems that there’s more of the same things, things that haven’t exactly worked to add jobs before, so why would they now?

    I’m sure that workers aren’t going to complain (now) about having the payroll taxes cut further, but considering we have had horrible job numbers for most of 2011, I guess I’m skeptical of this actually creating jobs. And, cutting them on the business side (which would be new) could theoretically loosen up some cash for businesses to hire, but will they? Again, I’m doubtful because of the fact that corporate profits, by and large, have been very good and improving over the last couple of years, but companies haven’t been re-hiring. So if they just take that cash and add it to their coffers rather than spend it, no jobs are created.

    The President promised that all of this would be paid for, but here’s the problem, the ‘cuts’ that would have to happen to off-set this $440billion in spending wouldn’t happen until after he’s left office, even if he’s re-elected. You think the next president or group of politicians elected down the road are going to merrily institute those cuts? Of course not. It’ll just get forgotten about and added to the trillions and trillions in national debt.

    I’m not sure that the Republicans are really the ones being backed into a corner. If anything, Obama is backing himself into a corner because if this doesn’t work, he is pretty much out of cards to play. The Republicans could very well just be giving him the rope they think he needs to hang himself. Either way, it’s sad that we the people will likely end up being screwed, however it works out.

  3. Question All says

    On the surface President Obama’s plan sounds good, but where is it?
    The president says that he wants the congress to pass his bill immediately, and asks that the public pressure them to do so, but where is it? Why isn’t the bill online for the public to read?
    The president, like everyone else in Washington, actually works for the people who can get them reelected, not for those who elect them. Before I or anyone else signs on to this thing we should be given the opportunity to read it.

  4. Peter says

    I like how when Obama took a dip in the republicans pool by saying we should get rid of Medicare and Medicaid, all of the republicans stood up and started clapping, but then he said we should stop giving tax cuts to the wealthy (it’s about time), they all sat back down and kinda crossed their legs in remorse. Greedy bastards. He really laid down the law to them though.

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