Your Black World reports
The economics community has given generally favorable reviews to President Obama’s new jobs proposal released earlier this week, stating that the plan could produce over a million jobs. The positive response has increased the chances that the plan could be passed by Congress.
The most impressive part of the plan, according to economists, is a suggested payroll tax holiday.
"This additional spending capacity in the hands of consumers should continue to foster improvements in aggregate domestic demand. And ultimately, it is demand and demand alone that will lead to more business hiring," said Russell Price, senior economist for Ameriprise Financial Services.
Price also estimates that Gross Domestic Product could be increased by 1.5 percentage points as well. The expected success of the plan may also lead to Republican opposition, since a strong economy would bolster Obama’s chances for re-election.
"Given the elevated risk of recession the U.S. faces today, additional near-term stimulus reduces that risk," said Joel Prakken, chairman of Macroeconomic Advisors told CNN. "Given the deleterious effects of long-term unemployment on an individual’s skills and long-term employment prospects, speeding a return to employment is both individually and socially beneficial."
Some, such as Mark Zandi, Chief Economist for Moody’s Analytics, expects that nearly two million jobs could be created by the plan. Zandi says that the implementation of a strong jobs plan could boost confidence among consumers and producers, leading to greater economic activity.
"Investors, consumers and businesses appear shell-shocked by recent events," he said. "Confidence normally reflects economic conditions; it does not shape them. Yet at times, particularly during economic turning points, cause and effect can shift."
It appears that President Obama has scored a major victory with his speech. The next battlefield will be on Capitol Hill, where Republicans are prepping for reelection. Their strong opposition to President Obama leads some to believe that they would rather see the economy crash than to have Barack Obama reelected.
The Rev. Jesse Jackson has called for all Americans to support President Obama’s economic plan. He stands among a chorus of African American leaders who are throwing their support behind President Obama. The fight is expected to be intense.