The United States of America is experiencing jobs crisis and nearly 16 million Americans are out of work. The number of people applying for unemployment benefits has risen and many others have to take care of themselves with part time jobs. The national crisis demands a clear plan which would create job opportunities for at least 4.6 million people in one year.
The Economic Policy Institute details some of the structural economic problems that include income inequality, the disparity between productivity and pay and unstable financial sector growth. The job crisis needs immediate cure and there is the need for a comprehensive plan to create jobs.
The immediate problem that is troubling the economy is that the resources are under-utilized, many people are unemployed and many more facilities are idle. Increasing the demand can act as a key to solving the problem. Exports were affected and people lost wealth in businesses. An effective intervention by the government to create new jobs can help get the economy lifted from the struggle.
The American Recovery and Reinvestment Act greatly helped in economic recovery by slowing down the economy’s free fall and creating around 1.1 to 1.5 million jobs. American Jobs Plan is looking to create at least 4.6 million jobs to help economic recovery and plans to employ a plan with five components for the purpose. The components of the plan include:
1. Strengthening of the safety net that includes unemployment compensation, COBRA health coverage and nutrition assistance.
2. Providing additional fiscal relief to state and local governments to help them balance their budgets.
3. Increasing investment in transportation infrastructure and repair and modernizing school buildings and facilities.
4. Creating public sector jobs for the unemployed people that will benefit their communities.
5. Designing a new job creation tax credit that would be wide-ranging, large and efficient.
The current economic and employment crisis demands immediate attention and an effective intervention from the government and can be successfully overcome if carefully acted upon.
