Today in the White House job summit, President Obama and his cabinet invited business executives, finance experts, economists, small business owners and labor leaders to discuss ways to spark job creation. The Christian Science Monitor highlights eight ideas to help jobs rebound and of these eight ideas, there are a couple that specifically caught our interest, including:
Tax credits. As it did with incentives this year for people to buy cars or houses, Congress may dangle cash in front of employers who hire. The liberal Economic Policy Institute estimates that if the Treasury refunds 15 percent of new wage costs in 2010, and 10 percent in 2011, the result could be 3 million jobs next year and 2 million in 2011. Some experts argue the credit won’t be that successful.
Just wait, jobs will come back. The first Obama administration stimulus package of $787 billion is still only partly spent. That, plus a nascent consumer recovery, will generate job growth next year, some economists say. And there’s this tough-love recipe for jobs: Let US wage rates adjust downward, so that the demand for labor comes into balance with supply. That’s a process that tends to be slow, however.
These ...
