Obama's 'all-or-nothing' jobs plan faces opposition from both sides

President Barack Obama speaks about his proposed American Jobs Act in Raleigh, N.C.

Jeremy Hobson: It has been just over a week since
President Obama laid out his job creation plan to Congress. He's been out and about saying lawmakers should pass his $450 billion package as-is. But just this morning, the Republican House Majority Leader Eric Cantor said he rejects the president's "all-or-nothing" approach
on the jobs bill -- and some Democrats have been critical as well.

Chris Low is chief economist with FTN Financial. He's with us live now as he is every Friday. Good morning.

Chris Low: Good morning.

Hobson: So Chris, opposition growing -- are economists like you expecting this jobs plan to go anywhere?

Low: I'm not. There will be bits and pieces of it that make it through, I'm sure. But there's so much opposition in Washington, and it's not just the Republicans. As you said, there are some Democrats, in the Senate particularly, who are uncomfortable with the tax break on Social Security taxes because they say it sets up Social Security to be the fall-guy for budget cuts down the road.

Hobson: So if we don't get a big package on jobs in the near future, what happens to the economy?

Low: Well, I'm more than a little nervous about that, because the economy, it is still growing but it's growing very close to stall speed, which means we're vulnerable to a shock, pushing us back into recession. I think ultimately, it increases the odds we see further stimulus from the Federal Reserve to keep things going.

Hobson: And Chris, there are people who would obviously would feel it, if nothing gets passed, who are unemployed. But what about those people who are employed? Would they feel a dip in the economy if nothing gets passed?

Low: Absolutely. You know, we're seeing continuously slower growth in income. It's a real squeeze, and it seems to be falling primarily on the middle-class.

Hobson: Chris Low, chief economist with FTN Financial, thanks as always.

Low: Thank you.

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