3

Stimulus plans to create, save jobs

A job seeker shakes hands with a potential employer at a job fair in San Francisco

TEXT OF STORY

Steve Chiotakis: The government reports that while new unemployment claims dropped a bit from last week, the number is still at a 26-year high -- 623,000. And that brings us to that stimulus package that House and Senate negotiators struck a deal on last night. The plan promises that jobs are on the way. But when will they come? Here's Marketplace's Jeremy Hobson.


Jeremy Hobson: President Obama wanted the stimulus to create or save 4 million jobs. After yesterday's negotiations, however, lawmakers say the final number may be closer to 3.5 million.

John Schmitt is an economist with the Center for Economic and Policy Research:

John Schmitt: You know, every time you cut a billion dollars, you're cutting a certain amount of jobs.

Seven thousand to be exact, he says. The bill will create jobs first in construction and state and local government. Then, Schmitt says, if all goes as planned:

Schmitt: The people who get jobs in the first round will spend the income that they get supporting a broader range of people in the economy, and that is what we really hope will turn the economy around.

So if you're a recently laid-off waiter, architect or engineer, you may have to hold tight for a bit. Or get a government job -- in energy, health care or education.

In New York, I'm Jeremy Hobson for Marketplace.

About the author

Jeremy Hobson is host of Marketplace Morning Report, where he looks at business news from a global perspective to prepare listeners for the day ahead.
Log in to post3 Comments

We are not a "shovel ready" economy. We are an information services economy, and it is ridiculous to assume that forward thinking is only investing in infrastructure and construction projects. The last industry we need to balloon more of is the construction industry. It grew because of the scandals in the housing industry and is experiencing what is a natural bust. My opinion is that we should focus our employment efforts where there is really long term growth and demand currently. If we just curbed the amount of offshoring we are doing to places like India - who have been immune to the global recession - then we would most certainly regain many more jobs instantaneously. Our economy is not the same economy that fell in the Great Depression. We need to focus our efforts on the reality that is at hand not some cockamamy pipe dream made up of construction projects and long term green technology. I support these efforts but they are no where near as central to the job loss debate as the offshoring that is going on. Of course, hiring Hillary clinton as our secretary of state, may have something to do with the sweeping under the rug pertaining to this very important issue. Come on now, the reality is before us. What century is this economics coming from???!!!

I heard about Barney Smith and his anti offshoring stance during the campaign, and now I am wondering where that Obama is that I donated to. I am a project manager, and believe me many of the job offers I have been getting have been for offshoring jobs to India. Tell me where is Obama's great conviction? How can we, the unemployed change the course and refuse to aid in the exodus of American jobs when our own president is dodging his own campaign promises? Its just wrong.

My first comment has not shown up, so I will repeat:
I was in the hospital for "tests". I waited in the ER for 12 hrs, then they proceeded to forced me to take numerous counterindicated drugs, even though they knew that I had life-threatening reactions to these drugs. When I was released, if found out that I had NO redress (google FDA preemption); I was fired from my job due to this assault; I was forced (by my employer) to get a disability designation; the insurance company took away my retirement and replaced it with a tiny "benefit". I'm now living in abject poverty. SSA will give me a tiny "benefit", if I give up my house to pay for more medical "opinions" (no treatment). I DON'T qualify for any of the "programs" that the government is paying trillions for. The VR refused any help, because I don't have enough income to qualify. All of the "nonprofit" agencies have refused any help, because VR refused to help. You have to be "abled" to get unemployment. I'm BARRED from getting any type of job at all. I don't qualify for any "rebates".
We need to get the greed, fraud, waste and stupidity out of this country, before we can think about payment. And, yes, I have written to Pres. BO. several times - I don't think that he is listening!!!!!

Let's do the math, $850 billion to create 3.5 million jobs. that's around $245,000 per job for 3.5 years making $75,000 per year.
Just give the money to the unemployed and they will inject it in the economy. We will have decent economy, enough to re-elect Obama.

you see, it's not about borrowing money with interest to create job, it's about what those job will do for a better future and I believe only $250 billion will be used for such a job.

With Generous Support From...