Obama's Planned Speech on Job Creation Is Already Under Attack

The Wall Street Journal has already begun its attack on Obama's planned speech about job creation. They cite an analysis by a consulting firm that put some of the ideas that have been leaked into its model of the economy. They conclude that the plan does not include ideas that will create many jobs. The WSJ also takes issues with the proposal for another extension of unemployment benefits. It argues that it will keep people from seeking jobs more aggressively. While I doubt that claim has much substance, my guess is that he will propose a weak plan for job creation that he can use in the 2012 election. For example, if he proposes a suspension of the payroll tax, and if the GOP opposes the plan, he can claim that the GOP does not want to cut taxes for ordinary Americans. If he proposes a tax credit for firms who hire new workers, he can also hit the GOP for opposing tax cuts for business. In any case, most economists do not believe that tax credits for hiring new workers will cause businesses to hire workers that they would not otherwise hire. Moreover, they are not likely to encourage the hire of permanent workers. I hope that he proposes a more aggressive plan that puts the GOP on the defensive, but it seems like he no longer puts much stock in "audacity".