Chairman of the Council of Economic Advisors, Austan Goolsbee explains the monthly jobs trends in the private sector over the past three years, 2007-2010. While acknowledging that more needs to be done, Goolsbee points out that leading up to the start of the recession in 2007, the U.S. neglected for years to make critical investments in the economy, thus squeezing the middle class like never before.
In 2007 the recession begins and prior to its peak in January 2009, there were more and more job losses each month, culminating with close to 800,000 in a single month. In fact, during a six-month period prior to President Barack Obama taking office, the U.S. sustained job losses of 4 million, Goolsbee says.
The Recovery Act was passed in January 2009, within 30 days of Mr. Obama being sworn into office and provided tax relief to over 110 million people, while cutting taxes for small businesses.
Goolsbee points out that the Recovery Act also included job creating investments, making provision for infrastructure investments, VA medical centers, funding for mayors all across the U.S. to keep teachers, fire fighters, policemen, etc. on the job and for investments in industries of the future, such as broad band and smart grids.
Earlier this year, more legislation was passed, namely the Hire Act to provide specific incentives to companies, as well as, the Small Business bill, bringing to 16, the number of tax cut provisions for small businesses.
The U.S. economy has seen nine straight months of private sector job growth. But, it is not nearly enough to absorb the more than 18 million Americans that remain out of work.
The president will like Congress to pass more legislation ($50 billion) for even more investments in infrastructure–roads, bridges, airports etc. helping to make the U.S. competitive, more attractive for businesses to invest and thereby leading to even further growth and job creation.
Will the U.S. Congress play ball and put Americans back to work?
