Obama’s Job Creation Promise

Source: Pavlina R. Tcherneva, Levy Economics Institute, Policy Notes, January 2009

A Modest Proposal to Guarantee That He Meets and Exceeds Expectations

Job creation is once again at the forefront of policy action, and for advocates of pro-employment policies, President Obama’s Keynesian bent is a most welcome change. However, there are concerns that Obama’s plan simply does not go far enough, and that a large-scale public investment program may face shortages of skilled labor, put upward pressure on wages, and leave women and minorities behind. Both concerns can be addressed by a simple amendment to the Obama plan that will bring important additional benefits. The amendment proposed here is for the government to offer a job guarantee to all unemployed individuals who are ready, willing, and able to participate in the economic recovery–that is, to target the unemployed directly. 

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