Attack unemployment

Opinion: February 10, 2010 at 12:00a.m.

Attack unemployment

Milwaukee Journal: President Barack Obama wants to spend $100 billion to stimulate the nation’s economy even as the federal deficit soars and the nation’s long-term fiscal outlook increasingly looks grim.

But in a time of persistent unemployment, it has to be done.

The economy shows signs of life — output was up more than 5 percent in the fourth quarter and a leading index of manufacturing is climbing — but unemployment remains chronically high.

Nationally, 10 percent of the labor force was out of a job in December, and the rate of underemployed is much higher — 17.3 percent nationwide.

It’s clear to us that Obama’s focus must be helping to get people working, and the final bill should include these elements:

A public service jobs program: It perhaps could be modeled on the Comprehensive Employment and Training Act from the 1970s or the Job Training Partnership Act from the 1980s. Both programs combined training with employment. The programs should be stopgaps until the economy starts to produce jobs at a faster clip.

Small business help: Obama is asking Congress to divert $30 billion of bailout money that the big banks have repaid to community banks for small business loans. The idea has merit but hinges on the ability of banks to find qualified borrowers who want the money. The president also has proposed two other, more promising, ideas: eliminating capital gains taxes on small-business investment and raising the limit on Small Business Administration loans from $2 million to $5 million.

Job creation tax credit: Obama wants to give employers a $5,000 tax credit for every new worker hired during 2010. A carefully crafted plan is worth a try.

There are no quick fixes, but Congress and Obama must keep trying to juice the job market.