Just my Thoughts · Politics

Obama and the Economy – The Details

The plan is long and the comments many.  You can read the entire content that has been released here.

I am going to take each section and blog about it separately.  My thoughts come so fast I cannot do the entire plan in one post.  I will start with “IMMEDIATE ACTION TO CREATE GOOD JOBS IN AMERICA.”

  • New American Jobs Tax Credit:  “Details include a 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.”  The big question here is how does the federal government guarantee these jobs stay in the US.  Yes, the company creates the job here in the US.  They train or start a US person, get the tax credit.  After a year, they ship the job elsewhere to make it more economical as the tax credit is a one time item.  Is there not a way to guarantee that the company has to keep the job in the US for five, maybe ten years? 
  • “Raise the small business investment expensing limit to $250,000 through the end of 2009”  This extends a change to Section 179 expensing limits that expired in December 2008.  I think this is a good idea.  I do have some concerns regarding it, though.  Without banks releasing credit and monies, there is not much to invest with.  Smaller businesses – which, in the plan listed at change.gov, are the target of this portion of the plan – do not necessarily have the money to invest at this point in time.  I don’t know that this portion of the plan will work without additional loosening of credit to businesses in this country.
  • “Zero capital gains rate for investment in small businesses”  What is a small business?  What start-ups qualify for this?  In theory a good idea but I would prefer seeing a few more details in the plan as to who would benefit from this portion.
  • “Save one million jobs through immediate investments to rebuild America’s roads and bridges and repair our schools”  That is what the bulleted portions of the plan says.  If you read the entire back up information, the last line will say “create or save” jobs.  It is one thing to say you will create jobs to help us out of this recession.  Saving jobs is equally important but does not address the huge number of people who are currently unemployed and looking for work.  Also, the plan says “help ensure that in-progress and fast-tracked infrastructure projects are not sidelined.”  These were projects that have already been started.  Finishing them is essential to the infrastructure of this country.  I do not believe this is simply an Obama-Biden plan.  I believe every politician would want to finish what is started.  Obama is simply the one saying we will find the money – although, I am totally unsure where – to finish these projects.
  • “Partner with America’s automakers to help save jobs and ensure that the next generation of clean vehicles is built in the United States”  Obama wants to double the $25 million in guaranteed loans to the automobile industry to help create new technology for vehicles.  I go back to my original stance on the automobile industry.  Money is not the only thing that is needed.  New technology is not the only that is needed.  A new, longer-term vision is absolutely necessary.  If the automobile manufacturers continue to think they way they have, in another 30 years, they will be facing yet another crisis.  While you and I may not have to deal with that – although we will still be alive – someone will.  This industry needs a huge revamping of their management and engineering styles.  They have been providing what the consumer will buy, what the consumer wants.  They need to be providing what the consumer should buy, what the consumer should want.  The industry needs to push the vehicle by putting out there what is not necessarily on the consumer’s shopping list, as opposed to letting the consumer dictate what is designed.          

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.