Will a 9.2% unemployment rate add up to new calls for more stimulus?

Mitchell Hartman Jul 8, 2011
HTML EMBED:
COPY

Will a 9.2% unemployment rate add up to new calls for more stimulus?

Mitchell Hartman Jul 8, 2011
HTML EMBED:
COPY

CHIOTAKIS: The jobs report today is not what the White House wants to hear — especially as the President and Congressional leaders debate a debt-ceiling deal that includes big cutbacks to government programs. In other words: big federal job cuts. Does that mean there’ll be an even bigger call for more stimulus spending to create jobs?

Marketplace’s Mitchell Hartman reports


MITCHELL HARTMAN: In fact, we’re already seeing in this morning’s job numbers what happens when stimulus runs out: governments cut 39,000 workers in June.

Gary Burtless of the Brookings Institution says maintaining stimulus spending would put more money in consumers’ pockets, and keep down unemployment benefit costs.

GARY BURTLESS: We have a huge deficit because we have terrible unemployment. But nonetheless, the narrative that says the debt or the deficit is our problem is dominating political discourse these days.

But Burtless thinks any more stimulus spending to get people back to work is dead in the water.

BURTLESS: At the moment there are only Democrats in favor of more direct federal spending to add to payrolls. So if we’re going to find common ground among the political parties it has to be I think tax cuts.

The most likely candidate — a payroll tax holiday for employers, to encourage them to hire up.

I’m Mitchell Hartman for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.