The Banking and Strategy Initiative

Chillin' out till it needs to be funded

How the new jobs act will do the trick..


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Firstly, one would note that the $240 bln released in payroll taxes including a cap of 3.1% insteadof 6.2% for the employer by 2012 would in ordinary course of action have just merited a tempting glance by the markets but exacerbated by the political circus so aptly reused by the President in his speech all yesterday, it is now the harbinger of the only effective option left with US for the remainder of the period till 2013. Even this is unlikely to have been assured of safe passage by the newly heard Tea party loud-mouths in the house.  There are no payroll taxes for new hires giving America the incentive to start hiring today in small business.

The outline of the plan kept global markets happy even as the Euro ticked downward ahead of the US markets open, the size of the proposal definitely larger than expected, The $35 bln for Teachers jobs in the state budgets a welcome new item to digest and the investments of more than $65 bln including $35 blnin  school infrastructure a good investment in America’s future. Apart from Krugman’s bow to the Presdent, in itself a rare phenomenon, the plan has been welcomed mostly by critics and supporters alike not commenting on its likely dwarfness compared to the first two years’ bailout funds from the Fed. the last stimulus was a good $865 bln

The $240 bln in Social security sops translates as $65 bln for new workers exemptions and 100% expensing and $175 bln from cutting these in half for all workers. the Pathways program for back to jobs have been allocated the remaining $62 bln after the $140 bln in infra improvements half of which was assigned to schools and teachers pay ( at states)

Our bottomline, much more is needed and withut the fighting much anticipated in congress next week/month over such a small piece

U.S. Presidential flag, 1960-present (not usua...

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