Mixed Reviews About Job Creation Causes Division Among Economists

Congress has proven its disunity this year in profound ways. Its inability to agree on almost anything has deeply wounded the American society. However, when it comes to the crisis for jobs in the United States, even professional economists find themselves disagreeing more than finding a unified solution.

A majority of economists believe that the government must take some sort of action to stimulate the economy and create jobs for citizens. However, from their different factions, each have their own beliefs as to what route will prove most effective long term.

The first option provides an extenuation for employees on the partial payroll tax holiday. It also creates a new holiday for those who own small businesses. This is a popular belief among economists. Additionally, this step is also in line with a key element in the Obama administration’s plan for job stimulus. Payroll tax cuts allow the government to receive more quality for the amount of money it requires. More quality for less cash is especially important in an economy that needs both spending restraint and stimulus. The Senior Economist of Amerprise Financial, Russell Price, agrees with this option for job growth, stating that it provides the best bang for the buck.

Another large majority of economists believe that repealing Obama’s healthcare reform is the best way to enable job growth in the United States. As the second most popular choice for economists, this argument supports the belief that the regulation of financial services outlined within the Dodd-Frank bill passed through Congress in 2010 will provide a suitable replacement for the healthcare reform. Chief Economist at the Fermanian Business & Economic Institute, Lynn Reaser, believes that the weakened regulations in transitioning from Obama’s healthcare reform back to the Dodd-Frank bill will significantly boost the confidence of businesses, thus creating more jobs. Many who support this standpoint also believe that public workers should receive more aid from the government to provide security from mass layoffs.

Several other opinions show smaller minorities of economists’ point of view on job creation. These varying viewpoints adds to the difficulty of making a unified decision on the most effective route to take for a stimulus. Some of these other opinions include spending more money on works for the public, and providing help so that local and state governments can give businesses an instant write-off of expenses on capital spending. Each viewpoint has created mixed results and various opinions, creating division among economists.

As long as both Congress and expert economists stay divided on an effective solution, the United States will continue to stay in its present topsy-turvy state. Unemployment rates will continue to rise to an all-time high. Meanwhile, those who handle important decisions cannot decide on the best medicine to heal the disease of unemployment that continues to spread rapidly throughout the United States.