econ-journal39 - However President Obama’s fiscal wish...

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Duc Hoang – ECON210 Journal Date: December 9 A Stimulus Package That Helps Unskilled Workers By Edward L. Glaeser NY Times December 9, 2008 Responding the unemployment issue that unemployment rate dropped to 6.7%, President Obama proposes a stimulus package which aims to raise the rate in order to fix the economy problem. His plan focuses sectors like transportation, energy and communication infrastructure, and much of the money spent in those sectors doesn’t go to less skilled workers. Many of the jobs in areas like clean energy and building broadband lines require specific skills that are rare among unemployed high school dropouts. Building tunnels and highways is awfully capital-intensive.
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Unformatted text preview: However, President Obama’s fiscal wish list doesn’t aim support toward the least-skilled Americans who need it most. Is this a bad idea? It is not at all as there is a strong case for spending on areas that create the largest social returns rather than turning public investment into a tool for redistribution. The basic problem is that productivity in the public sector, just like productivity in the private sector, is tied to education. He chooses the solution which hopefully turns less-skilled Americans into more-skilled Americans. As one of the two basic ways to increase output, increasing productivity seems to be a must....
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This note was uploaded on 03/10/2011 for the course ECON 101 taught by Professor Duc during the Spring '05 term at Linfield.

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econ-journal39 - However President Obama’s fiscal wish...

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