The Lehmann Letter (SM)
The president challenged Congress to pass his jobs-creation plan forthwith.
The president also said that his plan created no new spending, and that other and future spending reductions would offset any present increase. The plan also extended the payroll-tax reduction.
An increase in public-works spending and public-employee hiring coupled with a tax-increase postponement should help the economy. And it makes sense to permit the deficit’s expansion now, to be offset by a sharper reduction later when the economy is more robust. Keep in mind, however, that even if the president gets his entire package it can’t by itself restore full employment. It’s just not large enough.
But the president has challenged Congress to pass his plan, and by doing so has begun his re-election campaign in earnest.
© 2011 Michael B. Lehmann