The recent economic recession and ongoing problems in the American economy has revealed the full extent to which changes in fiscal policies of the US are essential. In fact, the change of fiscal policies should change the situation in the US for better and improve the position of the working class and employees, who suffered the most from the negative impact of the economic recession. Obviously, if the economic recession and its negative effects were the matter of financial losses of representatives of the upper class, then the economic recession is the matter of physical survival for representatives of the low-middle and lower class. In such a situation, the US authorities should conduct fiscal policies that stimulate employers to create more jobs and to prevent the growth of the unemployment rate that will give unemployed Americans a chance to find a job and means for living. In this regard, the US President, Barak Obama, has introduced recently the American Jobs Act that is intended to help to change the situation in the labor market for better. Based on economic indicators, the need for the American Jobs Act to be passed is essential with no tax increases to the people; it will help create jobs, cut taxes and also build infrastructure needed for the future.
On September 8, 2011 Barak Obama presented the American Jobs Act to Congress (Curtis, 2011). The American Jobs Act is the legal initiative of the US President that has the potential to improve the situation in the labor market. The improvement of the situation in the labor market can stimulate the economic growth because, if more jobs are created, Americans can earn more and spend more. The increase in spending will naturally stimulate the American economy and business activities. However, the American Jobs Act has not been implemented yet.
Nevertheless, the introduction of the American Jobs Act is important because it can help to change the situation in the US labor market and economy for better. In this regard, it is important to understand that Washington can’t turn the economy around itself, but it can provide a boost to the private sector (Condon, 2011, para. 3). Hence, according to Obama the bill “will provide a jolt to an economy that has stalled, and give companies confidence that if they invest and hire, there will be customers for their products and services,” (Condon, 2011, para. 3). In fact, such intention is apparently positive because, if the act stimulates the creation of new jobs, American business will revive due to the improvement of the situation in the labor market and, as a result, the rise in the consumption. At this point, it is important to place emphasis on the fact that consumption is the major driving force of the US economy. The drop in consumption deteriorates the situation in the US economy, whereas the rise in consumption stimulates the economic growth.
What is more important, the American Jobs Act is different from other legal initiatives of the US President and legislators. Other acts, which have been already introduced in the US, aim at the protection of interests of large corporations. They offer tax credits and government support to large corporations but they have little positive effect on the labor market and position of employees. The implemented legal acts and fiscal changes serve interests of large corporations and encourage them to spend more and conduct even more risky policies than they have conducted before the economic re cession because large corporations grow certain that they will get the government support, in case of any serious financial problems.
In contrast, to existing legal acts, the American Jobs Act’s basic idea is to turn a worker’s unemployment benefits — which usually last for 26 weeks, but have been extended to 99 weeks in 21 states with especially high unemployment — into “reemployment” benefits: providing income while being trained in a new job (Matthews, 2011, para. 4). In such a way, the American Jobs Act will encourage training and reemployment in the US, which is essential in the time, when Americans lose their jobs. In such a context, the American Jobs Act will have dubious effect. On the one hand, the Act will create better employment opportunities for employees, because, if they train, the develop new skills, abilities and qualifications. Then they become more flexible in the labor market. On the other hand, employees, who train, receive financial support that allows them to maintain normal standards of living.
In this regard, the key is to give states more flexibility to use those unemployment benefits to get unemployed workers back into productive jobs, which, if done correctly, will save the state money (Matthew, 2011, para. 5). In such a way, the American Jobs Act will also help to save public funds that is crucial in the time of economic recession. The saved public funds can be used for the stimulation of business activities at both federal and state levels. Moreover, the saved public funds can be invested in social and health care programs to support those in need.
In fact, the key points of the American Jobs Act are as follows:
Tax Credits and Career Readiness Efforts to Support Veterans’ Hiring (Putting Workers Back on the Jobs, 2011);
Preventing Layoffs of Teachers, Cops and Firefighters (Putting Workers Back on the Jobs, 2011);
Modernizing Over 35,000 Schools – From Science Labs and Internet-Ready Classrooms to Renovated Facilities (Putting Workers Back on the Jobs, 2011);
Making an Immediate Investment in Our Roads, Rails and Airports (Putting Workers Back on the Jobs, 2011);
Establishing a National Infrastructure Bank (Putting Workers Back on the Jobs, 2011);
Expanding Access to High-Speed Wireless in a Fiscally Responsible Way (Putting Workers Back on the Jobs, 2011).
Therefore, benefits of the American Jobs Act for the US labor market are evident. In this regard, it is worth mentioning the fact that the US needs consistent changes to help unemployed Americans to find a job and get better training. In such a way, they can get better employment opportunities and they will get a chance to find better, well-paid jobs. At any rate, the American Jobs Act has to be implemented because this is an essential legal measure to stimulate the revival in the labor market and improvement of the position of American employees. In fact, this is one of the few legal initiatives that aim at helping American employees but not large corporations and the Act has to be introduced to help American employees to survive.
Anonymous. (2011). Putting Workers Back on the Jobs. Retrieved on December 3, 2011 from http://www.americanjobsact.com/putting-workers-back-on-the-job.html
Condon, S. (2011). “Obama Appeals to Congress to Pass American Jobs Act,” CBS News. Retrieved on December 3, 2011 from http://www.cbsnews.com/8301-503544_162-20103581-503544.html
Curtis, C. (2011). American Jobs Act. Retrieved on December 3, 2011 from http://www.whitehouse.gov/blog/2011/09/09/american-jobs-act-read-all-details
Matthews, M. (2011). “One Good Idea in Obama’s American Jobs Act,” Forbes. Retrieved on December 3, 2011 from http://www.forbes.com/sites/merrillmatthews/2011/10/06/one-good-idea-in-obamas-american-jobs-act/