Forget The Deficit, It's Jobs, Jobs, Jobs!
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
President Obama will propose a $3.8 trillion budget today, which will lead to a $1.6 trillion deficit, which would be an all-time record and $200 billion higher than the 2009 number. Before you go all apoplectic about the numbers, the White House will attempt to calm us - the projected deficit will drop to $700 billion by 2013, due to an economic recovery which will increase tax receipts.
The President will follow up his SOTU promise of a jobs bill–some $33 billion will be allocated to the endeavor. I hate to be nit-picky, but $33 billion isn't enough to stimulate jobs in an economy of our size. The jobs bill seems more like a marketing pivot, than a policy one.
It can't be said enough, the labor situation will guide the nation's economy. With unemployment at 10% (over 17% if you include the "marginally attached" population), the hyper-focus on the deficit seems misplaced. Forget the deficit for now and focus on jobs. If we get people back to work, then tax receipts will really soar - that will be an excellent cure for the deficit woes.
More on MoneyWatch.com:
•Apple iPad: Is It Worth the Money?
•Apple on Wild Ride After iPad Debut
•Need a Job? Join the Mafia
•Vanguard Founder: Which Index Fund Is Better?
•Warren Buffett Gets the Google Effect
•Could Starbucks Rescue Your Retirement?
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
Popular on MoneyWatch
- Seeking solutions to the student aid mess
- Reverse cell phone lookup service is free and simple
- How to stop the mediocrity pandemic
- LinkedIn: 3 tips for building a better profile
- Kellogg re-inventing Special K brand
- Amy's Baking Company: Post-meltdown PR campaign
- Top 10 professional life coaching myths
- United Airlines resumes 787 Dreamliner flights