It might be just two weeks into the semester, but for the seniors on campus, it is already a nerve-wracking time. Over the next nine months, they’ll be assessing their options for next year. Will they take some time off to travel? Will they consider undertaking graduate studies? The bravest among them will even consider getting a full-time job.
It isn’t the best time for anyone to be looking for work, let alone the newly graduated. Unemployment has been hovering around 9 percent for two and a half years, without even mentioning the further 7 percent of the population who have been either unemployed for more than six months or work part-time and therefore do not count towards the unemployment rate.
So with that ominous background, does it make any sense for recent college grads to try their luck in the employment market at all? Is it really as bad as people say?
President Obama’s speech on the proposed American Jobs Act was delivered last Thursday. Reportage on the speech was low, given the impending 10th anniversary of the Sept. 11 bombings. However, it is likely that Obama’s speech will become central to upcoming national political debate, and so it is worth analyzing, particularly for those on campus who will find themselves in the job market within the next year.
The speech, first and foremost, demonstrated Obama’s talent at engaging with middle America. Throughout the 32-minute oration, he distanced himself from Washington’s “political circus” and emphasized the real-life concerns of average Americans who are struggling to make ends meet. But what of the actual policy?
On first glance, it appears fundamentally sound. Obama doesn’t shy away from the substantial cost- an estimated $450 billion – but he assures us that this will be financed in cuts from other areas. What is disappointing is that he admits some of these cuts will be from health care reform, an act that was probably the defining accomplishment of the first half of his presidency. Nonetheless, Obama has shown that he is willing to come to the negotiating table and make spending cuts elsewhere to satisfy conservatives. We can only hope that the Republicans, led by John Boehner, R-Ohio, will follow suit.
The cuts include tax breaks for small and medium-sized firms that hire new workers, as well as a 50 percent cut to payroll tax. Furthermore, any investment toward a business will not be taxed, encouraging businesses to invest in modernizing their equipment.
Obama has also promised $60 billion to go towards repairing and revolutionizing schools and keeping teachers who would otherwise be laid off, and $65 billion towards infrastructure renewal that will keep engineers and construction workers in their jobs. The proposed National Infrastructure Bank will also provide firms with capital to finance infrastructure projects that will impact positively on the economic viability of their regions.
The plan also has contingencies in place to expand unemployment benefits and encourage firms to employ workers on a part-time basis if they can’t afford to keep them full time.
What does all this mean for those of you looking for a job? First of all, that the government realizes there is a problem, and it is trying to fix it. But broadly, will it mean job creation will be spurred and grads will be able to find a job without a problem? I think so.
All of the proposals outlined in the American Jobs Act make economic sense – from keeping the 280,000 teachers who would be laid off because of state budget cuts (I’m looking at you, Mr. Walker) to the National Infrastructure Bank and the innovation that it will finance. After all, what the financial crisis has really showed the world is that America is vulnerable. It doesn’t have a ready-made answer to every problem, and while its economy is standing still, China’s is moving forwards rapidly. If America wants to lay claim to being the “best country in the world,” it needs to recognize there are certain areas where it is being soundly beaten and then set to work on improving them.
Just as important is the fact that the plan won’t grow the national debt. Conservatives have to admit they are impressed by the economic wrangling involved to bring such a claim to fruition. While Obama hasn’t yet delineated exactly where the money will come from – the details are set to be released next week – it is surely heartening for conservative citizens to know that the burden won’t grow too much. Of course, that won’t stop the wealthiest Americans (in other words, those who might have to pay a slightly higher tax bill this year) from complaining that the government is taking all their money.
The American Jobs Act will work. It might not work overnight, but it certainly will help to inject the economy with a much-needed boost. Whether government passes it quickly enough is another matter – the middle class can’t afford to wait for Congress to play its petty games. Hopefully when thousands of Badgers are graduating in the May of next year, they’ll have the Jobs Act to thank for the graduate positions they’ll be starting. They just have to depend on Congress to see sense and actually pass it – right away.
Shawn Rajanayagam ([email protected]) is a senior majoring in political science and American studies.
