Earlier this month, when Obama announced his jobs creation program, I asked, “Is that all there is?” (See “Obama Jobs Plan: Please Tell Us There’s More.) Well, it seems that the Obama team has already recognized that it’s inadequate, raising the target from 2-1/2 to 3 million jobs. In addition, he’s created a task force focused on helping the middle class.
WASHINGTON (Reuters) – U.S. President-elect Barack Obama unveiled a new task force on Sunday charged with helping struggling working families, as an aide said Obama’s economic recovery plan would be expanded to try to save 3 million jobs.
The White House Task Force on Working Families, to be headed by Vice President-elect Joe Biden, would aim to boost education and training and protect incomes and retirement security of middle-class and working families whose plight Obama had made a central issue of his campaign.
I’ll point out again, all of this is woefully inadequate. The U.S. is short 20 million jobs, not 3 million. Since America’s labor force grows by 150,000 per month (due to population growth), creating 3 million jobs over two years means that unemployment will grow worse by 600,000 jobs instead of improving.
Obama’s infrastructure spending will help in the short term, but that can’t be sustained for long. In the end, the only way to put this economy back on sound footing is to restore its manufacturing base, bringing 6 million high-paying manufacturing jobs back home. In addition, the administration has got to stop flooding our labor supply with immigrant labor. Immigration intensifies the over-supply of labor faster than it contributes to consumer demand.
Biden said the economy was in worse shape than he and Obama had thought it was.
“President-elect Obama and I know the economic health of working families has eroded, and we intend to turn that around,” Biden told ABC’s “This Week.”
I have news for the Vice President-Elect. The economy is in much worse shape than they realize even now. The “economic health of working families” can only be restored by shifting the balance in the supply vs. demand equation of labor in favor of demand, driving incomes higher. It cannot be done with more lending and debt. The only way to stimulate a lasting demand for labor is by bringing home the jobs we’ve exported through misguided trade policy.