Swift action needed on jobs

Federal deficits pose a long-term problem that requires an urgent response. A joint congressional committee, co-chaired by Washington Sen. Patty Murray, will soon begin work on a start, paring deficits by at least $1.5 trillion over the next decade. Some progress is assured: Automatic cuts kick in if the panel fails in its task.

Meanwhile, unemployment and a moribund economy pose a problem that’s both urgent and immediate. U.S. job growth was virtually zero in July. Economists representing a wide ideological range agree that failure to produce more jobs, now, threatens to throw the nation into another recession, which will only worsen the long-term deficit challenge.

President Obama is expected to propose several initiatives to spark job growth in a speech to Congress on Thursday. Ones that are targeted to produce jobs quickly, like tax credits to small businesses for hiring workers and spending on road and other construction projects that will put people to work (and have long-term benefits for commerce), deserve swift passage.

That means doing two things seemingly at odds with each other: getting additional short-term spending approved just as work is starting on reducing long-term spending.

Counter-intuitive as that seems, it’s the best solution for both problems.

The economy needs to add around 250,000 jobs a month to make a dent in the unemployment rate. But job growth, already slow, has stalled even more in recent months, essentially hitting zero in July. Wages have long been stagnant for those who do have a job, holding back consumer spending — which accounts for about 70 percent of economic growth.

Construction spending is half of what economists say represents a healthy level, and it fell across the board in July.

The negative signs are ominous. Another round of political bickering like we witnessed during the debt-ceiling fiasco could send unemployment into a deeper spiral.

Effective action to spur hiring, however, would make long-term deficit reduction easier. Economic growth is the quickest and most effective way to narrow the gap between spending and revenue.

That said, tough choices must be made to ensure an economic rebound doesn’t simply lead to another round of increased spending. The joint committee should set its sights beyond $1.5 trillion in spending reductions. Doing so will require Democrats and Republicans to show courage most have so far failed to muster in tackling politically sensitive issues, including entitlements, military spending and the tax code.

Solutions to the deficit problem aren’t easy, but neither are they impossible. As long as the economy breaks out of this malaise, that is.

Talk to us

More in Opinion

toon
Editorial cartoons for Monday, Sept. 25

A sketchy look at the news of the day.… Continue reading

Randall Tharp’s month recovery coins after battling a fentanyl addiction.  (Kevin Clark / The Herald)
Editorial: Fentanyl crisis should force rethinking of approach

A continuum of care, that includes treatment in jails, is imperative, says a journalist and author.

Comment: Carrying Narcan requires having compassion for addicts

The stigma around fentanyl addiction remains a barrier to its availability to treat those overdosing.

Comment: If AI ‘writers’ were human, they would have been fired

A series of stories, written by AI, have embarrassed news sites and raised questions about their use.

Comment: Murdoch’s out; not his legacy of ‘alternative facts’

The Fox News creator’s formula for laundering right-wing narratives as news lives on without him at the helm.

Fact check: No, migrants aren’t getting $2,200 a month from U.S.

A viral tweet by Rep. Lauren Boebert is a zombie claim that started in 2006 in Canada.

toon
Editorial cartoons for Sunday, Sept. 24

A sketchy look at the news of the day.… Continue reading

Flowers bloom on the end of a dead tree on Spencer Island on Monday, Aug. 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Editorial: Restore salmon habitat but provide view of its work

Comments are sought on a plan to restore fish habitat to the island east of Everett with popular trails.

FILE - Six-year-old Eric Aviles receives the Pfizer COVID-19 vaccine from pharmacist Sylvia Uong at a pediatric vaccine clinic for children ages 5 to 11 set up at Willard Intermediate School in Santa Ana, Calif., Tuesday, Nov. 9, 2021. In a statement Sunday, Nov. 28, 2021, California's public health officer, Dr. Tomas J. Aragon, said that officials are monitoring the Omicron variant. There are no reports to date of the variant in California, the statement said. Aragon said the state was focusing on ensuring its residents have access to vaccines and booster shots. (AP Photo/Jae C. Hong, File)
Editorial: A plea for watchful calm this time regarding covid

We don’t need a repeat of uncontrolled infections or of the divisions over vaccines and masks.

Most Read