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Although some members of his administration don't hold Fox News in too high of regard, President Barack Obama did sit down with the news outlet to discuss the economy. In the interview, President Obama offered what some are calling his "sternest warning" about containing deficits. President Obama believes that a further compilation of government debt could lead to a double-dip recession.
The president believes that his administration faces a "delicate balance of trying to boost the economy and spur job creation," but the administration has to set the economy on "a path toward long-term deficit reduction." He noted that it is important "to recognize ... that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession."
President Obama said that one way his administration is considering to kick-start growth is tax measures and other incentives for companies that hire new employees. The idea has some merit: companies will hire new employees in order to get the tax credits -- but that is where I feel the plan falls short. One-time tax credits are great, but what will happen if the company starts to lose money again? Who will be the first employees to join the unemployment line? How about those new employees that the company just got a tax credit to hire?
I'm not going to sit here and tell you that I have all the answers on how to emerge from the recession, avoid a double-dip recession, or solve the unemployment rate. Nevertheless, hiring incentives could be a short-term solution to the problem -- I stress the words short-term. We need to see long-term solutions to the problem. If you are going to give hiring incentives, give incentives for companies to educate its current employees to make them more competitive in the ever-advancing job market.
I wouldn't go as far as giving incentives for companies to keep employees (that leads to a guy in the basement grumbling about his red Swingline stapler), but we have to find a way to stimulate the economy. I just don't know how America could withstand a double-dip recession. It could be too much for the already weakened economy to handle.
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Reader Comments (Page 1 of 1)
11-18-2009 @ 2:23PM
Peter Van Schaik said...
Currently our model doesn't see another recession on the horizon. You can see the latest chart of the Cycle Indicator at http://jpetervanschaik.googlepages.com
11-19-2009 @ 5:37AM
charles cook said...
go back to being the manufacturing giant we were in the world.give the tax incentives to start up companies who are manufacturing good products for world consumption.made in the U.S.A.is the way to go to end this recession.stop importing and go back to exporting.