Thursday, September 8, 2011

President Obama's Jobs Speech - 9/8/11



I was impressed with the speech and appreciated the fact that the package was about 50% larger than had been anticipated in early reports.  The proposal falls short of the ideal, i.e. what is needed to recover quickly from the unemployment crisis - but the President was clearly trying to put a concrete legislative challenge to Congress on the table that would be realistic if a significant segment of the Beltway GOP was serious about anything other than sinking his chances for re-election.  He was asking his opposition to put country before petty politics.  Bitter experience, of course, suggests that they won't.

The speech was a substantive appeal to reason that could persuade moderate and/or confused voters that Obama is serious and his opposition is not, as well as offering the Democratic base some plausible agenda around which they can rally. The tone was passionate and convincing.  It represents a turning point, both for uniting Democrats and setting a marker for the coming campaign.

"Taking the temperature" among restive Democrats, here's one early reaction from economist Mark Thoma, who has been an outspoken liberal critic of the President on these issues: "(T)he speech was bolder than expected, showed political savvy (though it will still face stiff resistance), and there appears to be a commitment to keep pushing new legislation until the unemployment problem is eased."

2 comments:

  1. What do you think about the payroll tax cut? Doesn't that harm social security?

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  2. I think it should probably be seen like any spending now - near term benefits outweigh any deficit issues. Social Security is a pretty easy fix over the longer term, if we just bring at least 90% of income into the range of payroll taxes, which was Reagan and Tip O'Neill's plan. The extraordinary growth of income inequality over the past three decades threw their projections out of whack. The SS fix needs to be part of any long-range deficit reduction strategy. Right now, SS is a miniscule issue compared to the bigger losses of revenue from generic tax cuts, from unemployment and the broader issue of inflation in medical costs. My shorthand take, off the top of my head...

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