One Nation, Two Deficits

[Chappy]

Here's a plan to address two of America's short term and long term challenges. Worth a read.

Excerpted from “One Nation, Two Deficits” By PETER ORSZAG, Contributing Columnist, The New York Times, Published: September 6, 2010
[SIZE="+2"]T[/SIZE]he nation faces a nasty dual deficit problem: a painful jobs deficit in the near term and an unsustainable budget deficit over the medium and long term. …

In the face of the dueling deficits, the best approach is a compromise: extend the tax cuts for two years and then end them altogether. Ideally only the middle-class tax cuts would be continued for now. …

Senate Democrats and Republicans almost never come together anymore. This month, they should fight the dual deficits rather than each other. Let’s continue the tax cuts for two years but end them for good in 2013.

 

[washunut]

Here's a plan to address two of America's short term and long term challenges. Worth a read.

This is a good idea IF we can be guareenteed that the politicians will let the cuts expire in 2012 and not just keep extending them. But this is not really a meaningful fix, as the job problem is not a short term issue. Let's remember that something like 10-15% of the workforce is in some way tied to the construction industry. Until housing gets stabilized and there is a meaningful rebound in housing start unemployment in that area is stuck. We also have bled millions of jobs overseas in the last 20-30 years.

There needs to be a menaingful effort to stem this from happening. Obama promised some that of that in the primaries pro,ising to fix the free trade agreements to make them into fair trade agreements. I may be wrong but he has not done anything meaningful in this area. Unless he does something in that area, other than asking Wal Mart to add stores so we can greeters at $8/ hour where will the job growth come from.

Not from green energy as Obama spouts. Most wind and solar equipment is manufactured in China. So we create great ideas here and then export jobs to Asia.