Obama's proposals, targeted at spurring job creation in the private sector, would benefit cities like Philadelphia. That is, unless Congress dilutes the proposals, like it has so many other of Obama's programs - without his putting up much of a fight. (See: Stimulus. See: Foreclosure program. See, especially: Health care.)
Here are the president's three priorities:
* Use tax breaks to help small businesses - which
created 65 percent of U.S. jobs in the past decade - to grow and add workers.
* Increase investment in infrastructure: renovating bridges, highways and airports to increase jobs in the medium term, as well as to provide assets in the long term.
* Provide rebates for people to retrofit their
homes to become more energy-efficient - what some have dubbed "Cash for Caulkers." This would stimulate demand for construction materials and construction workers, and provide incentives to create new energy-saving products.
In a conference call with reporters yesterday, Christina Romer, head of the president's Council of Economic Advisors, pointed out that businesses and individuals might be in a better position to take advantage of these incentives now because the economy has improved mildly in recent months.
The administration has been floating the idea of underwriting the programs with about $200 billion that won't be needed for the bank bailout, but make no mistake, Obama's proposals will add to the deficit. But the nation has to create seven million new jobs just to get back to where we were when the recession started two years ago, and deficit spending is the only way to do it.
