A Jobs Bill: (Not so) Great Expectations


A Jobs Bill: (Not so) Great Expectations by Macroeconomic Advisers LLC concludes:

Temporarily extending the current payroll tax holiday, emergency unemployment benefit, and business tax breaks will temporarily boost GDP and hence employment, albeit modestly. For temporary training programs and hiring incentives to have much impact now, firms must be confident that when the temporary programs and incentives expire, economic conditions will validate the decision to hire earlier rather than later. In today’s economy, there’s certainly no guarantee this will occur. For infrastructure spending to make a big dent in the unemployment rate, it would have to be done rapidly and on a scale that is impossible in today’s political climate. In sum, and disappointing as it may be to unemployed Americans, there simply are limits to what a jobs bill can achieve today.

I am just pessimistic about what Obama will propose.  Macroeconomic Advisers LLC seems to be pessimistic that anything great is even possible.

About the pessimism of infrastructure projects, what comes to mind immediately is that fixing infrastructure that already exists can probably be started much faster than projects to build new infrastructure.

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