Obama's Job Plan

As I type this the pundits are already busy dissecting Obama's speech and his plan to attack the unemployment rate in the U.S. I've listened to some of the criticisms that have been thrown up but not too many. I've purposely stayed away from Fox news. I can only take so much negativity at a given time.

But the plan is a daunting task, as unemployment rates in the country are now at 9.1 percent. But Obama is asking Congress to put aside their political differences and help pass a $450 billion Jobs plan.

Here are some of the details as gleamed from an Associated Press story:

• The plan would cut the Social Security payroll tax both for tens of millions of workers and for employers.

• For individuals, that tax has been shaved from 6.2 percent to 4.2 percent for this year but is to go back up again without action by Congress. Obama wants to deepen the cut to 3.1 percent for workers.

• Obama would also apply the payroll tax cut to employers, halving their taxes to 3.1 percent on their first $5 million in payroll. 

• Businesses that hire new workers or give raises to those they already employ would get an even bigger benefit:  On payroll increases up to $50 million they would pay no Social Security tax.

 I don't know if these will work, but I have to say that this country seems to be in a crisis mode as of late. People are desperately looking for jobs - good quality jobs. Earlier I spoke about the forgotten ones, those individuals who are 55 and older, who are out of work and unable to go back and be retrained to do something else.

These blue collar workers, who I think are the backbone of this country, have been left out in the lurch. It is unclear if Obama's plan can do anything to help those individuals. It's unclear if Obama's plan will work at all.

I'll admit, I'm cautious. Not because I don't have faith in Obama, or I bemoan what he's doing, but rather because the employment situation in this economic has been a perfect storm. Less people are hiring, therefore less people are buying, which is causing businesses to hire less people.

I hope our President is able to succeed. Another few years of this could spell disaster for the country.