We all know the dismal job outlook for the American economy and President-elect Obama is now proposing on his website an agenda of solutions designed to increase the number of jobs and give businesses an incentive to hire more workers using tax credits.
According to the Obama website :
Obama and Biden will provide a new temporary tax credit to companies that add jobs here in the United States. During 2009 and 2010, existing businesses will receive a $3,000 refundable tax credit for each additional full-time employee hired.
This is a good incentive for employers to create new jobs in the U.S.; but the only worry is, are their enough buyers/customers to pay for each of these new employees. Currently businesses are shedding jobs like crazy in an effort to “stop the bleeding.” Why? People are simply not buying more products, cars, clothes and even houses because of a lack of income and credit. This is a good idea in the long-term; but I’m not sure if it is enough to shock the economy out of its stupor.
The President-elect’s website also states:
The Obama-Biden emergency plan would make $25 billion immediately available in a Jobs and Growth Fund to help ensure that in-progress and fast-tracked infrastructure projects are not sidelined, and to ensure that schools can meet their energy costs and undertake key repairs starting this fall…enhancing U.S. competitiveness in the longer term, and improving the environment by adopting energy efficient school and infrastructure repairs. In total, Obama and Biden’s $25 billion investment will result in 1 million jobs created or saved, while helping to turn our economy around.
Investing in the country’s infrastructure could actually work in the short-term and long-term to create more jobs, especially in construction and the blue collar sector. Will we experience another “public works” renaissance similar to the one undertaken when America’s highways were built? Only time will prove exactly how many new jobs will be created by the Obama/Biden administration.