On January 11, 2009, Barack Obama's transition team released a report detailing the jobs created by the proposed economic stimulus plan. Which workers would benefit?
Christine Romer (the designated head of Obama's National Economic Council) and Jared Bernstein (economic adviser designate to the Vice-president elect Joe Biden) have released an economic evaluation of the Obama's stimulus plan, arguing for the use of public money to shore up the faltering economy. Romer discussed this report in a video address; this article describes her address.
"A Bold, Innovative Recovery Package"
The stimulus plan is designed to create or save between 3 and 4 million jobs. This is important during a time when unemployment has reached 7.2 percent of the population, or seven out of every hundred people in the United States.
Many people have also moved from full time to part time work, usually decreasing their income and removing their benefits. Although these workers are still considered to be employed, they are not earning what they could be, and are considered underemployed.
Romer details three important areas of job creation.
Jobs in Construction
Obama's stimulus plan calls for investment in infrastructure, public works such as roads, bridges, and tunnels. Because these structures will need workers to build them, employment can be expected for construction, as well as increased workloads for companies which provide building materials such as steel, concrete, and asphalt.
These infrastructure investments are necessary, as demonstrated by the recent bridge collapse in Minnesota. Also, the construction industry in the United States has slumped dramatically since the housing market has declined.
Jobs in Retail and Wholesale
With Obama's proposed middle class tax cut, workers would have less money taken from their check each month for taxes. As a result, people would have more available funds to spend in the stores, which is especially important after the less than spectacular holiday sales in 2008.
As people would spend this newly released money, stores would need to hire new employees to meet the increased demand. Also, as products leave the shelves, manufacturers would need to create additional jobs to meet this increased demand, leading to more jobs.
Jobs in Education and Health Care
In the current financial situation, with decreased tax revenue due to unemployment and other factors, many state and local governments have scaled back employment in such government-run agencies as schools and hospitals.
Part of the stimulus plan involves giving funding to state and local governments, who could then use that money to hire health care and educational employees, such as nurses and teachers. Through this, employment in Education and Health Care would increase.
"Healthier, Faster Growing Economy in the Future"
As Romer has described, with investment in infrastructure, a middle class tax cut, and fiscal relief for state and local governments, employment will increase, and our public structures, schools, and hospitals will improve, and the retail sector will grow at an appropriate pace.
The copyright of the article New U.S. Jobs in Obama's Proposed Stimulus 2009 in American Affairs is owned by Jeffrey Donaldson. Permission to republish New U.S. Jobs in Obama's Proposed Stimulus 2009 in print or online must be granted by the author in writing.
if the banks didnt get the bailouts we wouldnt be able to cash our checks!
Jan 22, 2009 8:49 PM
Guest :
Bail ME out!!!!!!!!!!!!!!!!!!!1
Jan 27, 2009 12:19 PM
Guest :
I was laid off 8 months ago. The above article does provide some positive
news. Since the Obama administration had 60+ days to carefully think and
document the Economic Stimulus package, this package should have been ready
to be sent to Congress on 1/20/2009 (Obama's first day in office). I fear
the Obama admistration is moving much to slowly; and has already dropped
the ball.
Jan 27, 2009 8:03 PM
Guest :
money whats that im out of a job right now i was making good money now i
work for 7.00 an hour where i was making over 13 how do i pay my bills now
Jan 28, 2009 9:18 PM
Guest :
I sure could use the help since I been trying to get on disability for two
years now and haven't gotten a hearing yet. The stimulus check would help
my mother because she's been paying my bills and depleted her savings for
me so I wont lose my home.......I just don't understand if your doctor says
your disable and you have more than one illness whats the PROBLEM?
Jan 30, 2009 12:59 AM
Guest :
AND, if those same banks weren't wasting money that was not theirs for the
taking on such luxurious travel accommodations (i.e.- the 50mil JET they
would have bought without our knowledge had Mr. Obama not BLASTED them
publicly for such a selfish venture!), then OUR hard-earned and paid TAX
DOLLARS would not have been going to bail our their sorry butts!
Feb 11, 2009 5:07 PM
Guest :
Any money is good money!!! Thanks and now let's turn OUR country around!
Feb 15, 2009 6:29 AM
Guest :
i hope this works but if they would help out the working people first that
would give us more money to spend and we could boost the economy without
having to help the banks and all these CEO'S that are crying all the time.
Feb 20, 2009 9:23 PM
Guest :
This country needs to be stimulated. People are never satisfied!!!!!
If Obama did have the stimulus package ready on Jan 20. You would have
something to say about that. Lets give this new administration some credit
for trying to improve this country that the Bush administration put us in.
YES WE CAN! GOD BLESS AMERICA.
Mar 2, 2009 12:40 PM
Guest :
I am so sick about hearing the Bush put us in this economic crisis. If you
go back and read all the documents for the past several years in Congress,
House of Representative and other aspects of the government. We are in
this crises because of several democrates saying that there is nothing
wrong with the economy and Fannie Mae/Freddie Mac were lending money
correctly. Obviously many people have not heard about how it was warned
several years ago that we will be in an economic crisis if they do not stop
what they are doing. Also many people talk about loosing their job, well
why would that be? Would it be because it was outsorced to another
country. That happens when the taxes on business are raised. One of the
things Obama needs to do, is lower the taxes on business so they will bring
it back to the U.S. which will bring more jobs. At the rate he is going
right now, we will be a third world country. If you go and read his current
stimulus bill, it does not help most people that are not working, basically
he is making this the largest welfare country in the world. Nothing
anybody has come up with helps the people that make their payments every
month. Why should the government bail out people that purchased houses
they could not afford. The only way to help the people going into
forclosure is to keep their principal balance, lower their rate and no
appraisal. The appraisal values have dropped significantly. They do not
need to lower their principal amount, hell everybody will fall into
forclosure if they do that. Lower the rate, extend the term, keep the
principal amount and no appraisal. This should go for everybody. The
banks should be happy with some money instead of no money and trying to
sell the house in this economy.
Mar 11, 2009 6:10 PM
Guest :
Bush was not the only contributor to this problem we all have a blame.
Oboma is trying something here we as citizens need to make better choices
with purchasing with credit. That is were the problem has been. People need
to get back to saving and then purchasing items not putting them on credit.
This economy is affected mostly by the consumers spending so if you want to
help and cut off the greed save and destroy your credit cards.
May 9, 2009 3:08 AM
Guest :
so i got laid off in july of 2008, joined this program through the GA dept.
of labor. "workforce development program" is the name of it.
this$, hope grant$, & unemployment$ is how i have been living, along
with renting out my house to avoid foreclosure(it was well within my means
without a budget at the time)and moving back in with my parents. it is now
may 0f 2009 and i am certified in various welding techniques. by the way,
if you go to school using the hope grant you will pass automatically. i am
living proof of that. if you think i am joking, try it! i tested the
theory and it is true, GA school's will pass you through if you use the
hope grant. whatever, that is a different story. now my unemployment is
about to end, and there still aren't any jobs around, and i thought i knew
people that were connected as far as finding work goes. they can't even
find anything. 15 years doing land surveying and now i can weld. where is
the work obama? here i am doing what i am supposed to and it seems as
though people like me are getting the shaft the hardest. as far as the
housing issue and the bailout. has anyone else thought that if obama went
ahead and proposed a massive pay-off on all mortgages, a three year free
rent lease on all renters and leasers, free utilities for 3 years, put a
hold on all credit card payments and charges(meaning no fees and no using
them), treat health care like education and improve both dramatically in
all areas, also start up camps for the homeless would it had passed? i bet
it would cost about the same and it would make life better all around for
everyone and the future of our coutry. maybe i should be president! i
can't talk about my retirement money that i lost(over $188,000) without
wanting to start a revolution. without getting too long winded, i end by
saying the education for a new career is a joke, but if it will get you a
few extra bucks when you are hungry, go for it. i guess the next step is
to sell off my stuff so i can eat.
Jan 12, 2009
