Labor Day

This Labor Day weekend, job prospects appear about as inviting as the leftover potato salad. But President Obama found encouragement in the Friday jobs report for August.
Despite a rise in unemployment to 9.6 percent and a total loss of 54,000 jobs (farewell, census workers), the private sector created 67,000 jobs actually last month. This is considerably more than economists expected and the eighth month of the private sector increases.
"Jobs are created. They're just not as fast as they need to be made," said Obama. "We just have to accelerate."
No argument there. Indeed, it takes 125,000 new jobs per month just to growth in the number of employees agree.
The president will lay out some ideas on that next week, including, reportedly, tax relief for small businesses that drive job growth. Tax cuts would be a move away from the White House's strategy of stimulus spending by the government-created jobs.
To date, the administration and Congress generally followed Keynesian principles require the government pumps in money when the economy should teach.
Money from the 2009 Recovery Act, which cost an estimated 814 billion U.S. dollars, helped state and local governments to keep public employees on the payroll, unemployment assistance, paid for infrastructure projects, and provided that the individual and business tax breaks.
According to the independent Congressional Budget Office, the Recovery Act created or preserved 1.4-3.3 million jobs in the second quarter.
But it is not a "summer recovery", as promised. Some claim that the Greek debt crisis threw a wrench in the weak recovery from disturbance of the show, then drove down consumer confidence. Others claim that stimulus was the wrong tool - what was needed was the kind of relief that the Obama administration is now apparently considering.

One idea is a temporary tax holiday for small businesses. It would be the employers exempted from payment of social security and other taxes on employees, making hiring cheaper. Depending on factors such as how long the tax holiday would last - if too short, it will not be business concerns about the longevity and strength of a recovery to overcome - it would make the federal budget more than 300 billion U.S. dollars cost.
The administration is also talking about the ongoing restoration of the lapsed research and development tax credit. This incentive rewards companies that research new technologies at home in the United States. That can cost about 100 billion U.S. dollars over the next 10 years.
Given the slow economic growth and persistent unemployment, hoping that Obama was two-pronged support for helping companies to hire and grow in America to find. He must be able, if he offers a way to pay for his ideas. It is important to voters who worry about the deficit pile-on.
Even if Obama can balance the math, the President may be unable to political balance. The subject of tax cuts has generally a wedge issue for the November elections.
Republicans argue that all of the Bush-era tax cuts - set to expire at the end of this year - should be extended. Obama wants to extend tax relief only for those families earning less than $ 250,000. It is time for the rich to pay, says the president, but Republicans replied that "the rich also" many small business owners who would be hurt by an increase in the tax contains.

GOP lawmakers would accept payroll tax relief for small businesses in exchange for the approach of the Bush tax cuts for Obama? Or would they prefer his planned tax increases on higher incomes as a campaign theme?

Democrats would be willing to reduce government spending in order to pay for the kind of business tax cuts the President has in mind (as, indeed, she asks him to make such a sacrifice)?

This is the kind of wrangling that voters can expect to see in the coming weeks. What they want is less bickering, more jobs.