Obama Promises More Jobs, 90% In Private Sector

By Justin Gardner | Related entries in Barack, Business, Economy, Legislation, Money, Video

Before we get into the details, one very important thing I want to point out is that the Obama team is starting to make this plan bullet proof. Because not only are 90% of the projected jobs going to be created in the private sector, but the 10% of government jobs are those that are saved by helping states fill in the gaps in their budgets. Basically, we know those jobs are needed because they already exist.

Long story short, Obama’s plan may add approximately ZERO new government jobs so it’ll be nearly impossible for critics to spin this as bigger government.

Here’s his weekly “radio” address:

And here’s more from the NY Times:

Without an economic recovery plan, the report warned, the unemployment rate could hit 9 percent, up from 7.2 percent now. If the plan is adopted, unemployment is still expected to rise, but the rate is predicted to begin falling in the second half of 2009.

The 14-page report, prepared by Christina D. Romer, Mr. Obama’s pick to lead his Council of Economic Advisers, and Jared Bernstein, an economic adviser to Vice President-elect Joseph R. Biden Jr., was released to provide specific examples for the first time of the types of jobs that could be created. It was intended to counter some criticism that Mr. Obama’s plan would create new bureaucracies rather than put people to work.

The reported offered a detailed industry-by-industry breakdown on the jobs the Obama administration hopes to create with its stimulus plain.

The report is here. Please read it because it’s only 14 pages long and if you want to make an informed decision about Obama’s plan, you should do at least that much.

The jobs created as a result of spending are as follows…

244,000 from Health Care
250,000 from Education
377,000 from Infrastructure
459,000 from Energy
470,000 from Business Tax
505,000 from Making Work Pay Tax Cut
549,000 from Protecting Vulnerable
821,000 from State Relief
3,675,000 Total jobs

And here’s the breakdown by industry…

11,000 for Utilities
26,000 for Mining
50,000 for Information
98,000 for Transportation and Warehousing
99,000 for Other Services
158,000 for Wholesale Trade
214,000 for Financial Activities
240,000 for Education and Health Services
244,000 for Government
345,000 for Professional and Business Services
408,000 for Manufacturing
499,000 for Leisure and Hospitality
604,000 for Retail Trade
678,000 for Construction
3,675,000 Total jobs

So what does Washington think?

Well, right now we have the Democrats on one side criticizing the tax cuts and wanting more spending on infrastructure and bigger government. At the same time on the other side we have Republicans saying that there’s too much government spending and we should have more tax cuts.

So it seems like this plan hits the sweet spot right in between these arguments and so I think it has a good chance of passing in the current form, especially since Pelosi and Reid have signaled that they want broad support for the stimulus, not just narrow victories.

More as it develops…


This entry was posted on Saturday, January 10th, 2009 and is filed under Barack, Business, Economy, Legislation, Money, Video. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

7 Responses to “Obama Promises More Jobs, 90% In Private Sector”

  1. Jim S Says:

    But we desperately need bigger government. If we are going to have safe products imported from China and other low wage Asian countries the agencies responsible for consumer safety need massive hiring and training of people who will be able to inspect factories in those countries. If the countries involved have a problem with us sending inspectors then we need to have a problem with continuing to import products from them. The FDA also needs increased staff for domestic safeguards of our food supply.

    What about adequate regulation of the financial sector? The financial instruments and organizations that have gotten away with no oversight at all must be regulated and current staffs just aren’t large enough. Don’t contract these things out! We’d just wind up needing overseers for the overseers. As it is any additional funds released from TARP need a heck of a lot more supervision than what we’ve seen so far. That will keep a lot of people busy.

    In addition we are in desperate need of a drastic expansion of the NIH and other public health agencies.

    How many other things have I missed after years of people believing blindly that the private sector could take care of almost everything?

  2. Alistair Says:

    Jim S:

    Your are correct that government should get involve but we have to very careful in wasteful spending other wise critics Republicans and conservative will begin critizing him as a big spending liberal. Something that they always do to Democratic President. If jobs are created from the private sector it will be difficult for the Republican to make gains in the 2010 and 2012 election.

  3. JJ Says:

    The job-creation numbers are impressive, but I hope the other details of the plan don’t get ignored because of they don’t make great headlines. I think we need the stimulus plan, and it needs to be very large, but Congress needs to make sure that it continues providing benefits in the long term, not just a shot in the arm for the short term.

    The infrastructure spending will help keep the economy growing in the long term, but it would also be helpful if Congress could find a way to encourage businesses to invest in infrastructure as well. Possibly they could do this by making sure there are fewer unnecessary regulations that dissuade businesses from making those investments. There seem to be many businesses that have money to invest, but not as many that are actively investing in any forward-thinking enterprise. Hopefully Congress can find ways to get that money flowing.

    The tax cuts on businesses would certainly be helpful, especially on small businesses or businesses in sectors where there is potential for significant job creation. We need the businesses like that to be able to resume their traditional role as the engine of our economy. The government can certainly assist the process getting started, but businesses will actually provide the growth.

    I think the aid to the state governments is also needed, because the programs that the state governments support are needed for sustained growth. For instance, the state governments support schools and public workforce training programs. It is important to make sure both of those programs survive to make sure we are able to provide workers for whichever sectors of the economy are providing the jobs.

    I recently saw that the Friends of the U.S. Chamber of Commerce is working with Congress to make sure that they take these things into account when they are designing the stimulus package. They have a petition that I encourage everyone to sign to make sure Congress knows that we want the economy fixed – but we want it fixed for the long-term – http://www.friendsoftheuschamber.com/takeaction/index.cfm?ID=76

  4. Alistair Says:

    One thing that I believe that would help stimulate the economy either in private sector or the fed gov’t is trying to include people with disabilities so they can in this economy.

  5. wj Says:

    Allow me to take issue with the statement, regarding the state government jobs to be saved: “we know those jobs are needed because they already exist.” Really?

    No doubt that will be true of some of the state government jobs that are saved. But to contend that all state government jobs which currently exist are needed is nonsense. If there is a state which does not have a horde of (overpaid) jobs on state boards and commissions which are totally unnecessary, I have yet to encounter it.

  6. Jim S Says:

    Yes, many state jobs are needed. We need more people to help provide services to the unemployed because there are going to be a lot of them for the foreseeable future.

  7. Daniel Says:

    Lol, how did that work out for ya? Has Obama created even one private sector job?

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