The Job Hunt: Obama's economic stimulus plan probably won't help me get a job
Filed under: Budgets, Career, Recession
As one of the 10.3 million unemployed people in America, I'm having trouble getting on board with the $775 billion stimulus plan that President-elect Barack Obama is proposing to Congress to help stimulate the economy and get people back to work soon.
The American Recovery and Reinvestment Plan, as Obama has called it, would add 3 million jobs over the next two years and is a good start, but somewhat shortsighted. Spending billions immediately on public works projects and infrastructure such as renovating roads, bridges and schools is a good way to get some people employed again, but it won't meet the long-term employment needs of the nation once those roads, bridges and schools are finished.
And while I and many other former white-collar workers aren't averse to picking up a shovel, it doesn't look like his plan for "shovel ready" construction projects has much job help for people outside the construction trade.
He's also proposed a "Making Work Pay" tax credit of $500 for eligible individuals and $1,000 for couples. While getting up to $1,000 is a bonus everyone would be happy to get, it's a short-term solution to a long-term problem. I've received federal tax stimulus checks in the mail in the past, and like a lot of people, I quickly spent it to pay off bills. I didn't go out and buy more stuff to stimulate the economy, as President Bush hoped Americans would do with the rebate. The same type of Visa-bill paying, or maybe even putting it in a savings account, will happen again when Obama is president.
Instead of sending me a check for $1,000, I'd rather see most of the money pooled for employment retraining for white-collar workers, and some for other jobs. Six months ago when I was laid off I went to a career center run by the California Employment Development Department for assistance, because my former employer didn't offer any as I was shown the door. Other than some help with resumes, interview techniques and the like, there wasn't any help there to retrain me for another profession after leaving a dying one -- newspapers. There was plenty of training offered for electricians and other trades, but not much else.
The federal government should give states more money for such training and find ways to encourage people to get the tools they need to go into expanding areas such as green energy, social media, the Internet and many other areas.
There are some parts of the plan that would help the unemployed immediately, and they're smart moves that could save some people from losing their homes or health care. One policy change would subsidize employers' expenses for temporarily continuing health insurance coverage for laid-off workers under the Cobra law. The coverage is extremely expensive and forces people to take any job just so they can get medical care. Obama's plan would also allow workers who lose jobs that didn't come with insurance benefits to be eligible to apply for Medicaid.
Obama's plan is only for two years and is meant to get things moving fast, but a longer-term view is better if the goal is for people to stay in their jobs and contribute to the economy. The housing crisis, bailing out auto makers and banks, and other problems that led to the recession didn't happen over the past two years, and it will take more than thinking about the next two years to solve the problem.
Aaron Crowe is an unemployed journalist in the San Francisco Bay Area. Read about his job search at www.talesofanunemployeddad.blogspot.com
Money Clips
- HILARIOUS: Warren Buffet Plays Axl Rose in New Commercial - Huffington Post
- ON THE PLUS SIDE: Where Home Prices Are Rising - CNNMoney
- FRICTION: Could China Trade War Put Walmart Out of Business? - 24/7 Wall St.
- PROFILE: Opinionated Auto Industry Insider Dies - FORTUNE
- DON'T LAUGH: More Homeowners Turning to Fake Grass - SmartMoney
- HIT HARDEST: States Hurt Most From Rising Gas Prices - CNBC
- GET YOUR MONEY'S WORTH: Best Cars to Buy Used - CBS MoneyWatch
Reader Comments (Page 1 of 1)
1-06-2009 @ 2:54PM
Bas said...
"One policy change would subsidize employers' expenses for temporarily continuing health insurance coverage for laid-off workers under the Cobra law. The coverage is extremely expensive and forces people to take any job just so they can get medical care. Obama's plan would also allow workers who lose jobs that didn't come with insurance benefits to be eligible to apply for Medicaid." - While that's a good idea, I've taken "any job" in order to get medical insurance. So what if it wasn't my dream position? Any work is good work if it pays your mortgage and puts food on your table. Too many people don't want to retrain in anything that might get their hands dirty, but those are the jobs that usually can't be out-sourced.
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1-06-2009 @ 8:50PM
van said...
green energy, social media, the Internet -- there's plenty of people already available and wiling to do those jobs. Plus, those areas are still fuzzy as people to figure out how they'll make money. But the trades like plumbing, welding and electrical need people, they make money (more than white-collar college grads in many cases) and they won't be outsourced. Why not just accept that you've been booted out of a dying industry and accept training for one that is thriving. If it will give you money rather than collect unemployment, why not do it until you figure out a way to make money off of green energy, social media, the Internet?
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1-07-2009 @ 12:13AM
James Raider said...
Where is outrage over responsibility for the recession now that facts are clear in the rearview mirror?
http://pacificgatepost.blogspot.com/2009/01/democrat-responsibility-for-economic.html
It was evident then, it is even more evident now. Yet no feet are being held to the fire. Can we assume Madoff arrived just in time to take the brunt of it, deflecting all attention from where it should be focussed?
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1-07-2009 @ 10:18AM
SEG said...
commentors are probably white collar workers like me who have no idea about welding. Welders of the world... I'd like to hear from you. Would you want your son or daughter to forgo a liberal arts education and continue in the trade? My guess is welders have complaints too and might say immigrants will do the job for cheap and are leaving many of them with less options. the grass is always greener.
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1-15-2009 @ 4:24PM
Tom said...
You can learn about stimulus jobs at http://www.barackobamajobs.com
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1-18-2009 @ 7:47PM
Claire said...
Yes, it's going to be a rough ride for a while...but there are some great free ways you can get an edge. One is to build a professional identity online - one free service is http://www.nuresume.com which lets you post what position you are looking for as well as get alerts for matching internships and jobs. Good luck!
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1-23-2009 @ 9:36AM
mallory said...
either which way you look at it this country is in the pitts but at least someone (obama) is trying to get us out the best way he can.if you could of done better than maybe you should of run for president. i agree with the training thing for the white color people.but come on does it really take that much to pick up a shovel and dig????if that is what it take for me and my family to stay in our house then hell i will do it right away..
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2-12-2009 @ 5:11PM
Andy said...
Per this release, http://www.savingtoinvest.com/2009/02/help-for-unemployed-and-under-insured.html , the stimulus plan will also provide a 60% subsidy on COBRA payments (compared to 80% employers subsidize)
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2-27-2009 @ 10:01AM
Ivor Wright said...
It sure sucks right now. I've still got a job, barely, so I've just got into blogging in the hope that it will help in some way. I even posted a good idea for Jesus Obama to implement:
http://ivorwright.wordpress.com/2009/02/26/dear-mr-obama/
We should have five year olds making the decisions, if Obama can't!
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3-02-2009 @ 2:06PM
Peggy said...
There are new job links for green jobs and other stimulus jobs as well as grant information for education at http://www.barackobamajobs.net
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3-06-2009 @ 7:05AM
Michael said...
Just stay positive. I think Obama is a great president and I am happy he is there. Unfortunately he cannot fix everything. 3 millions jobs is a good start. Competition will recreate more jobs as well apart from the stimulus plan
His platform to support the artists is great
http://miketheblacksheep.wordpress.com/2009/02/28/the-change-we-need/
In this link I have a lot of information about his platform.
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