Economic stimulus fund are said to account for almost 600,000 jobs in the fourth quarter of 2009… 599,108 to be exact.
This figure, reported by the Obama administration, is compiled from 160,000 reports, says CNNMoney, “from state, local and corporate recipients that have spent stimulus money to keep teachers in schools and cops on the street, as well as to rebuild roads, launch green energy initiatives and fund other projects.”
This endeavor equals about 20% of the stimulus cash spent to date.
In all, the stimulus is estimated to have boosted employment by 1.5 million to 2 million jobs. This again is the administration’s figure, and Republicans are – of course – disputing it.
One of the reasons is because the unemployment rate is still at 10%, despite the $862 billion stimulus package that is now a year old.
Jay Mueller, senior portfolio manager at Wells Capital Management in Milwaukee, told Reuters, “All of the employment numbers are showing that the huge losses in jobs are well behind us but we are not gaining in jobs either.”
Even the huge growth in GDP (5.7% in Q4 – highest rate in six years) and manufacturing (58.4 ISM index rating – better than the 55.5 analysts expected) can’t shake job fears.
“I do think manufacturers are willing to hire if they have the need, but I think it's premature to expect a lot of job growth,” said Norbert Ore, chairman of the ISM's Manufacturing Business Survey Committee.
President Obama set aside $100 billion in his $3.8 trillion budget for unemployment initiatives.
But he’ll need help from Republicans to get anything approved.
From MarketWatch:
Obama included in the State of the Union and laid out in more detail on Friday initiatives that were bound to get bipartisan support, like business tax cuts and credits. Under the president’s proposal, businesses will get a $5,000 tax credit for every new employee they hire in 2010; small companies that boost wages or hours for existing employees will be reimbursed for some Social Security taxes; and capital gains taxes on small business investment would be eliminated.
President Obama and the U.S. Chamber of Commerce have been exchanging letters that pledge cooperation and effort.
In a Jan. 28 letter from Thomas Donohue, the Chamber’s president, to Obama, he said, “Decisive action, grounded in common sense, will go a long way towards easing the tremendous uncertainties that are today discouraging business and job creation.”
Common ground for both the administration and the Chamber of Commerce are export initiatives, small business tax credits and cuts, domestic energy programs, and infrastructure rebuilding.
But it will still be a tough row to hoe for Obama, as some challenge that his $3.8 trillion budget opens the deficit floodgates and substantially increases taxes, thereby stalling job growth – and the recovery.
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