|
Smith Faculty Opinion Article
The 30 Seconds Outlook
March 15, 2009
|
“The jump in the U.S. unemployment rate to the highest
level in a quarter century . . . suggests the recession is deeper than the
Obama administration forecasts and additional measures may be needed to
restart growth.”
|
|
—Bob Willis, Bloomberg.com,
March 7, 2009
|
There are several specific steps Obama should take immediately to place dollars
in the hands of the economic units that create jobs. One, forego and refund 2008-2009
Federal income taxes for small businesses and large and small corporations. Two,
make grants to increase the equity of firms effectively researching and/or providing
new and efficient sources of energy and conversion of salt water, including wind
and solar, offshore drilling technology and innovative energy efficient cars. Three,
create government “hedge funds” to bid for and to resell the “toxic assets” held
by banks “too large to fail.” Four, buy convertible bonds (or require “rights” offering
of bank shares where more desirable) of major banks assessed as having inadequate
capital, and require government representation on boards of directors. Five, provide
monies required to allow the FDIC to continue restructuring failing non-money market
banks. And, six, extend the eligibility period, as needed, for the formerly employed
to receive unemployment payments.
There are also two steps Obama should not take: “Dropping dollars from
helicopters” will not create jobs. And, business and individual income tax rates
should be permanently reduced to the lowest levels among major competitive
countries.
John A. Haslem
|
