President Barack Obama presented Congress with a $447 billion stimulus package aimed at stimulating jobs for Americans at a time when the unemployment rate sits at 9.1 percent and fear of a recession is increasing. The American Jobs Act was presented Monday.

The act includes funding for large infrastructure projects, opportunities and incentives for small businesses to increase production and hire more employees. Plans to hire more veterans and teachers were also included in the act. Obama also proposed extensions for unemployment benefits, cuts in payroll taxes and incentives for specialized schools, colleges and universities to train more engineers and skilled workers.

Obama explained the plan broadly, leaving the specific legislation for Congress to draft. He warned Congress against delays and politics regarding the act — not only to pass the act as quickly as possible, but also to strengthen the president’s approval ratings.

The president plans to pay for the stimulus package through balanced deficit reduction programs, claiming the act will not add to the current national deficit. Republicans argue against the act, believing the economy will naturally improve and jobs will increase with less government intervention.

 

The Daily Orange asked the experts: Do you think the American Job Act will improve the economy?

‘I like the job act. There’s a good chance of it working due to the current economic conditions, and the best part is that it encourages the purchasing of more goods and services. Corporations are already rebuilding and making profit but lack customers, so measures that deal with increasing purchases of goods and services are what will work and lead to job employment.’

Donald Dutkowsky

Economics professor in the Maxwell School of Citizenship and Public Affairs

‘Most economists agree that the original stimulus — mostly tax cuts and funding to states and localities — should have been bigger given the seriousness of the economic meltdown. Obama’s plan, in that context, may be too little, too late, but it will definitely help prevent layoffs and, through payroll tax cuts, extension of unemployment benefits and so on, put money in the hands of consumers, both of which will help the economy.’

Kristi Andersen

Political science professor in Maxwell

‘I think it would likely provide a very modest boost to the economy in the short run. The best outcome would be if it were followed by legislative action pursuant to recommendations from the so-called ‘congressional supercommittee‘ — set up by the recent congressional action to raise the debt ceiling — to also put the federal budget on a sustainable long-term trajectory.’

John Palmer

Professor and dean emeritus in Maxwell

meltagou@syr.edu

 

 

 

 

Published on September 14, 2011 at 12:00 pm

Contact Marwa: meltagou@syr.edu | @marwaeltagouri