President Barack Obama put jobs squarely on Washington's agenda, with a tone of urgency in his address Thursday and a mix of remedies that both parties have backed in the past.
"Maybe some of you have decided that those differences are so great that we can only resolve them at the ballot box," Obama told a joint session of Congress. "But know this: The next election is 14 months away, and the people who sent us here — the people who hired us to work for them — they don't have the luxury of waiting 14 months."
Fourteen million Americans are out of work, according to the latest unemployment report, and six million of them have been jobless for at least six months. If the unemployed all lived in a single state, the Economist magazine pointed out this week, it would be the nation's fifth largest, falling between Florida and Illinois.
Whatever steps may be taken, unemployment is likely to remain stubbornly high for several years, largely because of the lingering effects of the mortgage meltdown on consumer spending. But that doesn't mean Washington is without tools to bring the jobless rate down sooner and to promote private-sector expansion, which is what's needed to restore the nation's economic health.
What remains to be seen is whether Congress can set aside partisan squabbling —"stop the political circus," as Obama called it — to provide some immediate relief.
Republicans say the solution is cutting taxes, and Obama's plan relies heavily on tax cuts — one for employees, the other for employers.
By increasing this year's payroll tax cut for individuals and extending it to businesses, the president aims to "put more people back to work and more money in the pockets of those who are working." In pursuit of that same goal, Obama would maintain extended benefits for the long-term unemployed, recognizing that those dollars are desperately needed and will be spent quickly, benefiting local economies.
Obama's $447 billion plan also includes a $4,000 tax credit for businesses that hire people who have been out of work for six months or more, $35 billion to prevent layoffs of teachers and police officers at the local level and $50 billion for highways, railroads, transit and aviation — infrastructure improvements that will pay dividends for private-sector employers.
Obama's language was strong, as he repeatedly urged Congress to act quickly and pledged to "take that message to every corner of the country." But his plan is pragmatic, weighted heavily to tax cuts and with spending that would benefit the battered construction industry.
He acknowledged that the short-term stimulus must be paid for, promising details in a Sept. 19 speech. They're likely to include a mix of future tax increases and spending cuts — both of which are needed anyway.
Right now, with consumers reluctant to spend, businesses are understandably reluctant to invest. Government can to provide a short-term boost, and that's what Obama's plan offers.
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