By Tomi Johnson...Is Obama's jobs plan trickle down economics? Will this new rising tide lift our sinking economy? Is any plan better than no plan? Will banks lend to small businesses, and will small businesses turn around and hire? There are no guarantees on this one.
This type of supply-side economics provides tax breaks to businesses in the belief that this will indirectly benefit the broad population, namely the unemployed. Akin to Reaganomics, this new plan also calls for not raising taxes on those making less than $200k - or $250k per year, better known as the non-wealthy.
Let's be clear: The poverty rate, which is increasing, is $10,890 for one person, and $18,530 for the average household defined as parents, offspring and extended squatters. Being rich is relative, but some would deem anyone making over $20k rich in this economy!
According to Economist William Darity, Obama's job bill if passed will only put a band-aid on the unemployment sore.
"The problem is, of course, it's not a direct jobs program," Darity said. "The government 'incentivizes' the private sector (especially these mystical small businesses that Obama keeps touting as the big source of jobs in our economy) to hire people, rather than the government hiring people directly."
Even post George Orwell 1984, one wonders whether it is prudent to have the government hire more people to solve our economic problems. In a recent letter to me, Obama encouraged the unemployed to go to USAJOBS website (http://www.usajobs.opm.gov/), but getting a job there is near impossible, unless you are a veteran.
We also need to hire the unemployed, not just shift people from one job to another. We need to make sure that certain groups are not discriminated against in employment...we do not need the same old boys getting the same old jobs. We must narrow the wealth gap!
As our currency implores, PUT YOUR TRUST IN GOD, NOT MAN. We truly need a miracle!
©2011 Tomi Johnson. All rights reserved.
KDJ wrote: The truth is, all the facts are in where the US govt is spending our money - it’s that simple.
ReplyDeletehttp://www.washingtonpost.com/wp-srv/special/politics/budget-2010/
My take is this:
Military - Wars have been too long and too costly.
Social Security - People living longer, cost of living going up, people getting SS that are not citizens.
Medicare/Medicaid – same as SS
Discretionary – black box, who knows what’s inside!
War/Terrorism - creates uncertainty and adds more debt; cannot be sustained
Jobs- businesses are related to War/Terrorism, the uncertainty creates instability in market, offshoring creates lack of revenue, we are not exporting goods and services, we are importing, businesses are cash-rich and not hiring because they don’t need to
Government is ineffective - Big business, i.e. oil, insurance, banks, wall street, etc is driving political agenda harder than ever. Supreme Court is partially responsible since they ruled in favor of contributions to politicians.