Why America Needs A Jobs Bill

Last night, in front of a joint session of Congress, President Obama announced his $450 billion plan to help jumpstart the U.S. economy. “The American Jobs Act” calls for tax cuts for small businesses, new investments to modernize infrastructure and a 50 percent reduction of payroll taxes for 160 million workers. The plan also aims to reform unemployment insurance to encourage workers to pursue job training and expand summer job opportunities for low-income youth.

Many of the ideas unveiled yesterday have been supported by both Democrats and Republicans. With the political gridlock in mind that continues to plague Washington, the President urged strongly for compromise.

“The people of this country work hard to meet their responsibilities,” Obama said. “The question tonight is whether we'll meet ours. The question is whether in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy.”

As a whole, the plan is a good step in the right direction. If passed, the plan could add 2 percentage points to real GDP growth and 1.9 million payroll jobs, and reduce unemployment by a percentage point, according to Moody’s chief economist Mark Zandi. Extending the payroll tax holiday on its own could add 750,000 jobs, Zandi told McClatchy-Tribune News. While the bill still needs to be vetted by Congress, this short-term stimulus would come at a critical time for an economy that has yet to fully recover from the 2008 recession.

The U.S. unemployment rate continues to hover around 9%. Even more alarming are the number of Americans who are unemployed or working part-time but want full-time work, which stands at 18.5 percent, up from 18 percent at the end of July, according to a Gallup Poll. It is clear that Congress needs to act quickly to improve the labor market. Without immediate action, there will continue to be uncertainly in global financial markets, which will undermine long-term economic growth and private sector job creation.

For far too long, politicians in Washington have ignored our real priorities. America can no longer afford the price of political posturing. As we approach the 10th anniversary of 9/11, we should be reminded of our ability to come together as a nation in times of uncertainty. Today, our economic security is in danger. I hope Congress and the President will set ideological differences aside and unite to pass a jobs bill. The American people deserve it.