Should government spend to create jobs or reduce deficit?

What’s more important for the government to do right now — create jobs or reduce the deficit?

President Barack Obama is proposing ways to encourage new hiring by small businesses, including several tax incentives and new access to credit, the Associated Press is reporting.

Obama put forward the measures in a speech Tuesday, in which he laid out some of the things he would like to see in a new jobs bill to address continued high unemployment, AP said.

To help unlock credit for small businesses, for instance, Obama said he supports using money left over from the government’s bank bailout to increase lending.

But, at the same time, the federal deficit is ballooning, adding trillions of dollars to our long-term debt.

What should the priority be — putting people back to work or getting a handle on our debt?

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62 comments Add your comment

Pat

December 8th, 2009
11:53 am

PoorSystem

December 8th, 2009
11:56 am

Why can’t you do both? The fastest way to grow jobs, cut the business tax from 35%+ down to 10%. You give companies a reason to keep jobs in America, create new jobs, create more people paying taxes because they have jobs, and STOP pork barrel spending. It’s not brain surgery, but with a liberal Congress that only believes that spending will create growth and more government intervention will heal the economy, I doubt it will ever happen. The issue is the Government and the oversight they want in everything. Look at Social Security (bankrupt), Medicare (bankrupt), Health Care (give me a break). Can the government manage anything?

mark smith

December 8th, 2009
11:57 am

How can someone help the private sector when he has only worked for the government. Which in turn spends more money then it makes…….I guess we will be in debt for a long time.

Pat

December 8th, 2009
11:59 am

The government needs to put people back to work so they can pay more income taxes to increase the income tax revenue that goes to the federal government.

Mr. Nobody

December 8th, 2009
11:59 am

How about both??? Lower taxes will allow businesses to take greater risks to expand the size of their companies…in return creating new jobs? Why is that so difficult? The leftover TARP money will only be a drop in the bucket in the amount that we have to repay, but it would be a start. We are talking TRILLIONS!

PoorSystem

December 8th, 2009
12:06 pm

The government will NEVER create jobs. Only the private sector creates the jobs, and with our tax system the private sector CANNOT AFFORD to add jobs and pay the taxes they pay, especially when other countries only charge 7%-12% for business taxes. Keep letting them pour money down the well. It’s going to push the country into a total depression.

Mr. Nobody

December 8th, 2009
12:10 pm

Why do we need government to create jobs anyway? Why do so many democrats think that government is the only answer to all of the countries problems? Government does not make this country great…

George G.

December 8th, 2009
12:15 pm

Of course not. The sheer lunacy of this administration is beyond description. Hope and Change means skyrocketing dept and increased dependency. Redonk. Good job Obama voters.

rhw

December 8th, 2009
12:20 pm

Our state of America is in deep and bad troubles. Watching those CEOs and others who created this entire mess! America workforce is deeply more than unemployment…infact, it is ashame of a powerful country; yet, can’t keep it’s very own people working and progressing. We go over-sea to make a dollar and shaun down on our very own people with no regrets. President Obama did not create this 8 years mess and it will be beyond his Presidential years before it is solved. The Democrats are fighting over healthcare when hardly no American families perhaps have it and they have created a stink as well. Republician…this goes for you as well. We should stop shauning down on our very own people and see to it that we all are given the same rights as other. This not about those who have and those who don’t, even the rich, and well-to-do were standing in the food lines on Thanksgiving Day. We are all rocking in the same boat. I think that one way that might help America is for the President to forgive America Families Debts to a point; because the tax payers dollars have already been given to banks and others to solve the America debts and this country can start over again. Banks are robbing the citizens with their interest rates and eve with that, people will still fall behind because of this high rate and unemployment. I see no light at the end of the tunnel unless someone can show America a new and bright path it must follow! If the President want’s to lift up the economy; people earning and having money that will go back into the economy is the only way…there is no other because America is not working because no one is hiring! All of the money that the citizens have is used to pay for high credit cards bills and other bills when our finance situations hit the wall. Our homes are not worth nothing because of the real estate elected to cheat people into high compounding mortgage rates. Now, many of the Real Estate Agents and Real estates office are also out of business and fighting like everyone else! When the cornerstone is pull out, the entire structure of America is affected in finance, jobs, and unemployment. It is has gone on to long and it now must stop if America is to survive for the next years ahead of us. We all are suffering! Even the those in six figures who now have nothing…and those who are consider better than us…well, they to are suffering from all of this turmoil! Is there a brighter future coming?, or are we waiting to see what will happen to America?

Tim W

December 8th, 2009
12:28 pm

This guy has absolutely no clue to how create jobs and get this economy going again. If you were in debt up to your ears would you go spend another 50K to get yourself out of debt? My head is about to explode. What a duffus!! This is what you get when you elect a community organizer to the most important position in the country. He hires radicals who only want to hurt the people who make this country run. Welcome back Carter. Until the media (this goes for you AJC) starts questioning Barry and holding his feet to the fire the USA remains in big trouble.

Government Solution

December 8th, 2009
12:31 pm

Let us first debunk the myth that the government needs to take a hands off approach to fixing the current economic ills in a volatile market. The government has always enabled the private sector to create jobs through tax incentives, tax credits, direct investment in infastructure, ambassadorships, etc. There has been no private enterprise that has not benefited “directly” from government intervention and investment despite what some of the uneducated tea baggers believe when they picket on public roads and sidewalks. At its most basic level, businesses use human capital (educated more than likely in public schools), public roads, the tangible benefit of government ambassadors to promote international business and research/development dollars in the forms of tax credits for their product or service.

The lone argument for our divided government is how to allocate resources and to whom. So yes even though I believe the POTUS in theory when he says direct investment is required to jump start the economy, I am always leery of what the final bill will look like and for what industries it will cater to.

Donna P.

December 8th, 2009
12:42 pm

Whoever voted Obama into office should be ashamed of themselves. He is a MORON! What he needs to do is to make sure employers are only hiring Americans not illegals or H-1B visa holders. If you give tax breaks to all business that hire verified Americans, that would pull us out of this job slump. Besides, I thought illegals and visa holders are doing “jobs Americans won’t do”. Well, Americans will do any job right now. I know, I’m a racist and xenophobe!

danjonglee

December 8th, 2009
12:43 pm

I thought our Pres. just said we are out of the depression…

The Dogfighter Returns

December 8th, 2009
12:44 pm

folks the financial system is simply on it’s last legs. the country is broke.

Every year we get poorer and poorer. Unless you deal with the trade defecit everything else is merely a bandaid.

Companies are not interested in creating jobs in the USA when they can find someone in another country to do the same thing for a tenth of the cost without any benefits.

If you think the economy is bad, imagine how worse things would be if we were not at war?

street smart

December 8th, 2009
12:48 pm

TIM W——Did you compare Obama to Carter? Carters failed policies would be a blessing compared to what Dubya has done to this country. What did you expect from someone who failed at EVERY task given to him in the Bu$h financial empire. At least Carter took his familys business and turned into a multi-million dollar industry. It took us 8 years of one failed Bu$h policy after another to get us to where we are today. If theres a way out of Dubyas legacy on the USA show me JUST ONE GOP on capitol hill that has an answer! If they know so much they wouldnt have supported Dubyas failed policies to begin with now would they?

Elliot Garcia

December 8th, 2009
12:55 pm

Federal government spending will not create jobs. Companies are not hiring right now because they are afraid to add payroll because they are not sure how many new taxes the federal government is going to add and if they can even afford them.

Less government, not more!

Eric

December 8th, 2009
1:01 pm

“Spend our way out of the recession”
LMFAO
This idiot has NO CLUE!!!
At 47% and plummeting, this moron should resign in shame now and spare us the last 36 months of his “wisdom”

CHANGE?? It’s on it’s way SOON Obumble…

Mr. Nobody

December 8th, 2009
1:04 pm

street smart- name a Bush policy that “failed”? Obama and Carter are both man-ginas.

Government Solution

December 8th, 2009
1:04 pm

Apple Economics 101

Let’s make it easy for the hard of thinking.
lets start with bob. bob gets a job working on a stimulus project. bob gets paid. bob wants to buy an apple. the apple store sells bob an apple. the money used from bob pays the register girl that sold bob the apple. the apple delivery guy keeps his job because apples are being sold. the apple farmer gets to keep his farm because bob wanted his apple. the register girl, the truck driver the store owner , the farmer all buy more apples creating a demand for apple crate makers. apple crate makers hire people to make crates. the crate manufacturers also buy apples.

apple economics 101

Now let’s have some the enlightened people on here (Donna P, Elliot) tell us how tax cuts to the wealthy will create those jobs for an ordinary Bob. I’ll wait for you look up what Hannity, Beck or Rush says about job creation…

Cutty

December 8th, 2009
1:08 pm

And tax cuts worked so well the last 8 years. To all who are now ringing ‘the debt’ alarm: Where were you the last 8 years?

Cutty

December 8th, 2009
1:10 pm

Why do the same republicans who hate government so much, want to be in charge of it?

Government Solution

December 8th, 2009
1:19 pm

Cutty….

I’m waiting for the fiscal conservatives to explain why they re-elected Bush in ‘04 despite an exploding deficit and tax cuts for the wealthy during a time of war

Mr. Nobody

December 8th, 2009
1:19 pm

Gov. Solution

Here is your answer- Mr. Wellington is a filthy rich SOB millionaire, however, he is taxed so much he can’t afford, or doesn’t want to risk buying his own apple farm and beginning a competitor apple company. However, the Gov. decides to loosen it’s stranglehold on Mr. Wellington’s pockets allowing him to free up some of his own money to venture out and create his own apple company…in return he is creating more jobs, tax payers, etc. He decides to hire Bob as the plant manager.

eagle1

December 8th, 2009
1:20 pm

Cutty,

Obama and his goons have increated the national debt 10 times over than did Bush! Obama is bankrupting this countgry. Obama and Pelosi, Reid are nothing but a disgrace to Washington D.C.! They need to be run out of the country! This is the worst administration ever!!!

Obama is an idiot!

December 8th, 2009
1:22 pm

How can you spend your way out of debt? Only a clueless moron of a left wing socialist would even try it!

Metro

December 8th, 2009
1:24 pm

Build the Northern Arc!

ugaaccountant

December 8th, 2009
1:24 pm

Government Solution -

Thanks for the coherent example from a democratic perspective. I appreciate the thought that went into this, but think it is incorrect.

The stimulus money isn’t creating jobs. Those jobs already existed and are simply being funded out of a different pot of money than normal. These public works jobs have always existed and been funded out of normal tax money at the local, state and federal levels.

As well any truly “new” position created will only be temporary until the stimulus money runs out, so Bob gets an apple this week but not next week. Not sure the chain reaction will get very far before the stimulus pot runs out.

Never took gov. money

December 8th, 2009
1:31 pm

Spending our way out of debt is what got us in this to begin with. Exceeding our means, we need to cut the government spending and taxing to decrease the burden on the tax paying public. Reducing the tax rate as an incentive to bring businesses and jobs back into the country is a great example. Allowing business to keep more earnings to invest in jobs, is another.

RLP

December 8th, 2009
1:33 pm

The bush administration has left us in the worse way. Our President is trying to clean up the bush mess. People need jobs! Jobs come first! Once we get on our feet then we can address our debt. Its so funny to try to pay off the deficit and people cant even pay their bills. I am sure the comments who are negative on everything our President does to solve our probems wouldnt give him credit if all was well. Lets not forget were all this mess came from. I am for putting people back to work then tackle the deficit.

Libraryjim

December 8th, 2009
1:37 pm

Why did we elect Bush to a second term? Two words “President Kerry”.

and yes, we did yell about the spend and spend policies of the Republicans during their tenure in the Executive and Legislative branches. Since the Dems. took the Congress back two years ago, and the White House this year, the spending and debt eclipsed all debt from G. Washington to W. Bush combined! Now we have cartoons of the big O thinking “hmmm, what comes after a trillion?”.

bigdawg88

December 8th, 2009
1:38 pm

Tax cuts do NOT help to stimulate jobs. The FAILED Bush policy of tax cuts to spur investment only gave more money to the rich. Economists who studied the job cuts the last 40 years or so admit that the rise in economy had little to do with the tax cuts. In fact, it was usually some boom period that caused the economy to rise. The last few booms were the result of the housing market, internet boom, oil speculation, and the old Savings and Loan junk bonds. All would have occurred whether taxes were raised or lowered. This country’s economy usually grows based on speculation. right now the people with money aren’t waiting on tax cuts to invest, they’re just waiting on the “next big thing” before they invest their money. Some of the stimulus money was to go into the alternative energy markets to try to “stimulate” an alternative energy boom. The other money was to spur growth in highway construction. However, the states have been slow to spend the money (why now?) so there haven’t been tangible results.
Many of you fail to realize how much psychology, not logic, plays in investments and economic cycles. The stimulus bills are a way to move the psychology towards the positive side. Of course we can try things the Japanese way and hope the economy recovers on its own. Their economy stagnated because they DID NOT spend enough money, and they are still suffering to this day.
Obama is not an idiot anymore than Bush is. If he is, why do so many economists say the same thing? At least he studied and consulted on it, not make some knee-jerk policy like Bush.

bigdawg88

December 8th, 2009
1:42 pm

Mr. Nobody,
If nobody has jobs to buy apples, why would you open a new apple farm in the first place? And if you came up with better apples than the next guy it doesn’t really matter about the taxes because you’re both taxed the same. And I’d rather pay taxes on a million dollars than not pay taxes on a thousand dollars.

Vern

December 8th, 2009
1:43 pm

How do you create JOBS? Reduce the taxes levied on businesses (large and small) and create an environment making it advantageous for them to hire. Small businesses comprise over 95% of all businesses and raising taxes on the Sub-S and LLC companies which pass the income thru to the owners (average taxable income from IRS data is $500,000.00 passed thru to their individual 1040 return makes them “rich” Americans subject to higher taxes) takes away any incentive to add any employees.

Scooter

December 8th, 2009
1:47 pm

This President and Congress pay lip service to the Private Sector, while demonizing them for political reasons. Regarding the question, depends on who you believe in, government or the private sector. Personally, I look to all government’s unsustainable entitlement programs of the past and wonder how rational people can be buying the stuff Congress is selling. Ultimately, too many democrats have blind faith in government.

Sooner or later we will talk about how this President ascended to the Presidency after changing nothing in Chicago politics and really accomplishing nothing significant. When all is said and done, that will be the story. Perhaps then blacks will realize Obama was raised by white folk and cut him loose… nah, won’t happen.

Carlos

December 8th, 2009
1:47 pm

This whole thing is so funny. You people want tax cuts. You want the government to create jobs. You want to bail out the Too Big to Care (they never really helped you at all). You want to gripe and complain. In fact you want to do anything but go to work. I don’t really care if your communist, Democrat, Republican (Some of the worst). None of you wants to really work. Like it’s supposed to be. You want to borrow.

Oh you look so good in that new house and car. Please. Fact is your Buy here pay here payment plan. Doing things like that, has you working dizzily 77 times more than if you really worked. Because you work mostly at nonsense-that slaves too this debt based, debt ridden country.

So in the former days. When people actually had common sense. They saved and worked and saved. See little by little. Your bank borrowing pork diet. Has left you bloated and dizzy. Unable to distinguish between what its like to be a real human being or a captive.

Government Solution

December 8th, 2009
1:51 pm

ugaaccountant…

I also have a degree in Accounting from UGA so its good to engage in lively debate with a fellow number cruncher…Your assumption is only partly accurate. First, only a fraction of the stimulus funds have been spent somewhere in the neighborhood of 20%. Second, The stimulus does create temporary jobs but it also creates permanent jobs as well. Public works projects are only a percentage of the funds that are being spent in our state or any other state for road projects. Also included in that total allocated to our state is federal dollars for affordable mulitfamily housing. The funding gap created by private capital not being available because of a volatile economy had to be filled by the government. The money from the government to build 100 units of affordable housing creates 11 new jobs and and 47 temporary jobs on average. Instead of the government giving “tax credits” to private companies (Bank of America, Suntrust, JP Morgan Chase, Raymond James), a direct invest was made to fund these programs. It wasn’t “new” spending but speding done in a different way. The net result is the same amount of jobs being created. So when the stimulus does run out, we are all crossing our fingers that the economy will stabilize and at some point the private sector will have a need for tax credits again.

Scooter

December 8th, 2009
1:52 pm

Enter your comments here

bigdawg88

December 8th, 2009
1:54 pm

Dang Carlos, that was harsh!
But oh so true….
Unfortunately things have to get worse somehow, otherwise how will all that back of the Bible stuff happens? It’s almost like someone planned it that way…. ;)

Big Government Waiste

December 8th, 2009
1:55 pm

Why bother posting, they dont listen anyway. Obama and his experts who have spent 7% of the working lives in business know nothing about creating jobs.

First off, Government does NOT creat jobs. Small business owners like myself create jobs. We do this by selling products. The economy is such that nobody is buying anything, builders are not building, people are losing their jobs, they are not spending.

Cut taxes all around, corporate and personal tax, get rid of the double taxes, stop spending what you dont have and back out of the way and let us move the economy. There is no such thing as spending your way out of debt or spending you way to create jobs. The people in washington are simply put MORONS.

Cutty

December 8th, 2009
1:59 pm

So by LibraryJim’s standards- You yell and scream, but vote for the crooks anyway.

ITP Jacket

December 8th, 2009
2:02 pm

Government Solution – where does the government get it’s money to give away in the first place to create those jobs? I hope you don’t vote – it is because of ignorant people like you that we are in this mess. The Four Ghosts of depression – Obama, Pelosi, Reid & the Obama voter.

I hope the people losing their jobs voted for Obama – that old wheel rolls around again. Maybe they will finally wisen up. Don’t bring up Bush – he was a terrible over spender, but he is gone. This is the democrats mess now.

Fedup_11

December 8th, 2009
2:05 pm

Big government can not create jobs but it can remove the barriers for the private sector to create jobs of value. Lower the corporate tax rate; America has one of the highest corporate tax rates in the world. Doing so would enable companies to expand, hire and be more competitive in the world market. In fact, don’t stop there. Lower income tax rates to free up individuals to invest. But Obama’s Marxist agenda won’t allow for that since the goal is to grow federal government and dependency of its citizens upon it. It is ridicules to think we can spend out way out of debt. Insulting to be fed such nonsense. Instead, instill in persons to become self-reliant; not to become slaves to an entitlement system. Beware of the man; he hates our system and is bent on destroying it.

Mr. Nobody

December 8th, 2009
2:07 pm

BigDawg- If nobody has jobs to buy the apples then those people need to start producing goods and services that people need. Not trying to sound cruel or harsh to anyone who may be out of work. I’m missing your point…should the government just give everyone a million dollars? If that’s the case I’ll quit working too.

Road Scholar

December 8th, 2009
2:08 pm

Scooter, you are the biggest idiot to post to date. You’re no 1!

For those who say government doesn’t need to invest, get your car and feet off our public roads and sidewalks. Get your butt off the bus or plane (airports are public!). Stay at home and ponder your life.

All recessions in the past had a strong infrastructure program to build roads, bridges, etc. These projects put people to work. They had a positve effect to the economy. Real Americans work and pay their taxes! They have a lasting legacy as to the added skills of the workers and the actual project that people continue to use. Now, what does doing nothing do? What has the tax breaks done other than reduce government income ?

Cutty

December 8th, 2009
2:09 pm

How can you all say a word, justifiably, about the spending under the Obama administration, without uttering a word about the spending for tax cuts, two wars, Medicare Part D, etc of the last administration that almost precipitated the very existence of our economy. Partisan leanings are natural, but lets be real. You can’t blame this on the person replacing the fired employee (in plain terms), unless you had something to do with that person’s firing. If you extended his contract (re-elected him) you really don’t have too much to say as you championed the same policies you’re complaining about now.

Obama hasn’t deviated much from the Bush playbook, which was fine with you all for 8 years. Don’t get mad because the nameplate has changed.

Libraryjim

December 8th, 2009
2:09 pm

Better the crook we know will limit the damage rather than the one we know will burn the house down after taking the silverware. But a large part of the problem is the election system. As it stands now, only those with enough money CAN run for office in all 50 states (look at Stephen Colbert’s ‘run’ — he found out that he couldn’t even get on the ballot in some states unless he put out thousands of dollars in candidate fees!). And then when the primaries are held, who got chosen this last time around? An inexperienced radical with visions of totally restructuring the basis of the United States Government, who chooses a running mate he has to keep out of site; and an experienced but clueless Republican in name only who chose a running mate only to throw her under the bus!

No, the entire system is broken. The only hope is a full return to Constitutional principles that the founders envisioned for this country. That system works, but for some reason, we want to throw it under the bus.

Fedup_11

December 8th, 2009
2:10 pm

btw, a bumper sticker recently declared the owner in favor of the public option. It was best deciphered by a DAWG fan to mean, the owner of sticker really wants rest of us to pay for his/her health care. Isn’t socialism great? Imagine Grady everywhere.

Tom

December 8th, 2009
2:12 pm

No.

Cut taxes and get the hell out of the way of the productive Americans. Right now we are telling the kids the future is in the government. That will be our downfall as a country. The future has always been in the American people who produce, strive, and struggle for a better life. Not those who want to do the minimum and have the government fill in the rest.

Common Sense

December 8th, 2009
2:12 pm

Should government spend to create jobs or reduce deficit? No

And it should not penalize people who are trying to save money for a rainy day by setting low interest rates too – just to artifically prop up an inflated stock market.

Road Scholar

December 8th, 2009
2:16 pm

BGW: “Small business owners like myself create jobs. We do this by selling products. ” And who buys? (you have to have people buy to make money!) Those are the people who have jobs. Money that is “invested” in infrastructure allows those employees to buy, which pays your salary, which allows you to buy, which pays someone else…etc. Money invested in Infrastructure projects “turnsover” 6-7 times in the marketplace creating and maintaining jobs. Besides, as stated above, they leave roads, bridges, etc.

All the business tax breaks in the world won’t create jobs at the scale investment by the government does.