For the past month we’ve watched markets swing violently without any sign of a policy plan from vacationing U.S. politicians.
The Obama administration, however, has promised to announce a revenue neutral jobs plan after labour Day. Reports say that the plan will be a combination policies the President has discussed before, but in a powerful package.
- An extension of federal funding for emergency unemployment benefits
- An extension of the payroll tax holiday, possibly expanded to include theemployers’ portion of Social Security taxes
- An extension of temporary businesses “expensing” of capital investments
- A new tax credit for businesses that increase the size of their workforce
- Infrastructure spending, perhaps including renovation of public schools
- A job-training program targeting the long-term unemployed, possibly modeledafter a program in Georgia
- To pay for these short-run initiatives, the President may seek more long-termdeficit reduction than called for under the recent debt ceiling deal
So do you think Obama will be putting something on the table that could calm markets, or is this just another act of political theatre to be ignored?
And if Obama isn’t doing the acting, do you think Republicans will start the show regardless?