President-elect Obama wants his economic team to develop a plan to create 2.5 million jobs by January 2011. Such a plan has the virtue of providing a specific goal -- and with 1.2 million jobs lost so far this year and more on the way, such a goal would more than offset the lost jobs.
But setting the goal and achieving it are two different things. In the next two months, Obama's economic team -- which will reportedly be announced on Monday -- will need to flesh out the details of a strategy to achieve this goal. And these details will involve using government money to rebuild roads and bridges, upgrade schools and build wind farms and alternative energy technologies.
If Obama is to achieve his goal, he will need to get legislation passed soon after he takes the oath of office. And the legislation will need to provide concrete answers to many questions: Which projects will the government invest in? How many jobs will the projects produce? How much money will be required to finance these projects? Where will the money come from? What profits will these projects generate? How soon will the government get its investment paid back? How much economic growth will these projects create?
I think Obama is certainly focusing on an important priority here. And I look forward to seeing his administration's answers to these questions over the next few months.
Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.











Reader Comments (Page 1 of 1)
11-22-2008 @ 11:22AM
Virgil Bierschwale said...
This story has been all over the media this weekend.
What amazes me is that people don't ask questions.
First of all, even though I think unemployment is in the 15 to 20 percent range of 200 million Americans, we will use our governments estimates of 8%.
That means 16 MILLION people are out of work.
To promise that you will deliver 2 1/2 million jobs over the next 3 years does not even amount to a pen prick to the problem.
Now I wrote an article a few days ago titled "An Economic Stimulus plan that will stimulate the economy" that will actually immediately restore the economy and save your retailers, manufacturers, raw material producers and consumers without having to resort to a bailout of any type.
WHY are our political and corporate leaders not pursuing this path ?
Could it be that they don't want to admit that they caused this global crisis, or could it simply be a matter of greed ?
Virgil
http://www.KeepAmericaAtWork.com
11-22-2008 @ 11:50AM
SC said...
YES he can!!! after taxing the crap out of what is left of the 95% working middle class. UTOH... do ya think he lied? Maybe 'spread the wealth' was the only truth he told. Prep yourselves for the changed USSA. You idiots wanted it. Bunch of welfare cases.
11-22-2008 @ 11:52AM
Mike said...
Obama's plan will not create one new job. He will move jobs from the private sector to the public with no net increase in jobs. The government cannot create jobs.
11-22-2008 @ 12:16PM
Chris said...
There are several critical problems in answering your questions.
First, government spending siphons resources away from the private sector, leaving less resources for businesses to satisfy their customers wants.
Businesses are *much* more in tune with what is truly demanded since they operate with profits and losses.
Government does no such thing...all decisions must (and are) made for political reasons.
Without profits/losses as a guide, you may as well throw darts across a pitch black room. Since government cannot operate via the market signals of profit & loss, that is exactly what it does every single day.
11-22-2008 @ 2:04PM
Pavlo said...
First of all, as I understand it is % of people who actually want to work, not o entire population.
Second, if US will subsidies and evolve public transport system and alternative energy the targets might be achievable.
Pavlo
11-22-2008 @ 3:12PM
Greg said...
good god; why do people still act as if the "free market" is some god-like invention that magically knows how to divide resources properly??? isnt that what this crisis is about? a failure of the private sector? Im no socialist, you do need markets, but what do some of these posters mean when they say the government cannot create jobs? The government certainly can and it has...how many us citizens are employed by the government today? The problem with markets is that they do have profit and loss, they only provide what is profitable not what is necessary. roads, schools, and alternative energy are a good example of areas that are best in government hands.
11-22-2008 @ 3:47PM
bd said...
Sure he can create the jobs - you either join his national police or be punished. Yes Osama was elected but nobody has to give him respect or support him in anyway - he must earn respect and actually do something other than talk to gain trust and support - Bring on the freakin tests already - it won't take long to see whether he is a man of his word or just a man of empty words.
11-22-2008 @ 5:57PM
jeff said...
Creating jobs and creating the money for pay checks are 2 different animals.
11-22-2008 @ 11:08PM
liberal scam said...
YES he can with 2.5 millions illegal alien get new jobs and most corporation hire illegal and get amnesty with 50 mills with free healthcare just like right now so they can more breeder,ALL LIBERALS SCAM
11-23-2008 @ 8:47AM
Monroe said...
There is much work that needs to be done right away on our roads, bridges, water and sewer services. What has been done by our forefathers is wasting away now because of neglect. It this isn't taken care of soon we will slowly fall apart as a nation. Many jobs would be available for those who have the backbone to really work and not sit on their backsides doing a cushy job. Work is work and we have a big mountain to climb to get this country back in to shape. Once construction is started in these areas then you will also see the housing industry and related businesses get back on track.
11-23-2008 @ 8:49AM
DAVE said...
the real problem is the black man wont be given a chance, even though Mcain faced the same economic problems set forth by his republican buddies, nothing would be blogged if he got in, u haters
11-25-2008 @ 11:21PM
Freedom said...
This is all useless. Why build roads, bridges etc there won't be anything to haul or use them. The 1930,s building program went to electrify and connect America. We have both now. We need JOBS and not the pass money around kind. Our manufacturing is gone due to regulations and insurance required by politicians to manipulate votes. If you don't play by their rules you have two choices provide these necessary items (which break every comapany eventually) or move to countries where there are none or minimal.