Tomorrow President Obama will give a speech to Congress on how he wants to address the unemployment rate, which remains above 9%, with consistently weak job growth in recent months. According to early leaks, his speech will call for $300 billion in government spending and tax cuts:
President Barack Obama, facing waning confidence among Americans in his economic stewardship, plans some $300 billion in tax cuts and government spending as part of a job-creating package, U.S. media reported on Tuesday.
The price tag of the proposed package, to be announced by Obama in a nationally televised speech to Congress on Thursday, would be offset by other cuts that the president would outline, CNN reported, citing Democratic sources.
Bloomberg News said the plan would inject more than $300 billion into the economy next year through tax cuts, spending on infrastructure, and aid to state and local governments.
Obama would offset those short-term costs by calling on Congress to raise tax revenues in a deficit-cutting proposal he will lay out next week, the news agency reported, without citing sources.
Most people are getting suspicious, and with good cause, of the government’s success in creating jobs in the United States, especially with the recent failing of Solyndra, a company producing solar energy widely touted by the Obama administration and supported with a $500 million government that just declared bankruptcy.
What Obama should consider is removing barriers to domestic oil and gas production, a move which could potentially help create over 1 million jobs in the next decade, according to a study by Wood-Mackenzie, an energy consulting firm. Now, these studies tend to be optimistic, but even 500,000 jobs over a decade is quite significant, when you consider that it will be entirely privately financed. Spurring energy production might also be a path toward deficit reduction, as federal revenue from the oil and gas industry could raise an additional $30 billion dollars by 2020. That isn’t much compared to the $1.5 trillion required deficit reduction by the Congressional super committee, but it is a start, and doesn’t require cutting spending or raising taxes.