Obama to “Jumpstart Job Creation”
Facing new-home sales at a 50-year low, jobless claims at an unexpected 16-year high and signs of a deepening recession, President-elect Barack Obama delivered a rundown of his economic recovery plan, which includes creating 2.5 million jobs by January 2011. “We’ll put people back to work rebuilding our crumbling roads and bridges, modernizing schools that are failing our children, and building wind farms and solar panels; fuel-efficient cars and the alternative energy technologies that can free us from our dependence on foreign oil and keep our economy competitive in the years ahead,” Obama stated in a radio address last week.
A major component of Obama’s economic recovery plan is to create new jobs rebuilding and repairing U.S. infrastructure, such as highways, bridges, tunnels, and ports. As a result, executive search firm, A.E. Feldman, says that Barack Obama’s Presidency promises to create huge job opportunities in project and infrastructure finance. Renewable energy advocates and environmentalists also anticipate a comprehensive national energy plan focused on fostering clean-energy technologies, according to CNET News. Jobless Claims Hit 16-Year High
New claims for unemployment benefits jumped the week ending November 15th to a 16-year high, according to the Labor Department. The government said new applications for jobless claims rose to a seasonally adjusted 542,000 from a downwardly revised figure of 515,000 in the week before. The four-week average of claims was even worse, rising to 506,500 – the highest level in more than 25 years. Moreover, the number of people continuing to claim unemployment insurance rose sharply for the third straight week to more than 4 million - the highest since December 1982.
Meanwhile, California’s unemployment rate alone jumped to 8.2% in October, up from 7.7% the month before, according to the San Francisco Chronicle. Nationwide, the jobless rate was 6.5% in October. The Federal Reserve recently released projections that unemployment will continue to climb to between 7.1% and 7.6% percent. Many economists, however, expect unemployment to reach 7% by early next year… and 8% by the end of 2009.
In this midst of the slowdown, President-elect Barack Obama has promised change…and jobs.
Obama Plans to Add 2.5 Million Jobs
Last week, after investors endured another tumultuous ride on Wall Street, Obama outlined a plan that he says would create 2.5 million jobs by January 2011. Intrinsic to the plan are American workers who will rebuild the nation’s roads and bridges, modernize its schools and create more sources of alternative energy.
Obama on Infrastructure & Renewables
President-elect, Barack Obama, has said that as president he would spend $150 billion to develop more environmentally friendly energy sources…and in doing so he would create 5 million so-called “green collar” jobs. Another key proposal under Obama’s plan is to extend the Production Tax Credit (PTC) - a credit used successfully by American farmers and investors to increase renewable energy production and create new local jobs. Large scale renewable energy projects rely upon the Federal Production Tax Credit (PTC), which provides incentives for development of renewable energy.
In an interview with Time published on October 22nd, Obama outlined his plan to launch an “Apollo project” to build a new alternative-energy economy. “From a purely economic perspective, finding the new driver of our economy is going to be critical,” according to Obama. The days of easy credit are over, he said, “because there is too much deleveraging taking place, too much debt.” A new economic turbocharger is going to have to be found, and “there is no better potential driver that pervades all aspects of our economy than a new energy economy … That’s going to be my No. 1 priority when I get into office,” Obama said.
During his campaign, Obama also promised up to two million new jobs annually through national infrastructure investment. On his web site, Barack Obama said he “believes that it is critically important for the United States to rebuild its national transportation infrastructure – its highways, bridges, roads, ports, air, and train systems – to strengthen user safety, bolster our long-term competitiveness and ensure our economy continues to grow.”
While in the Senate, Obama also a co-sponsored The National Infrastructure Bank Act, which is now Included in his plans for rebuilding the nation’s infrastructure. Senators Chris Dodd and Chuck Hagel, introduced The National Infrastructure Bank Act, back in August 2007. The legislation would establish the National Infrastructure Bank - an independent entity of the government tasked with evaluating and financing capacity-building infrastructure projects.
The bill would effectively create a public-private partnership agency tasked with expanding the role of the federal government in creating massive public works projects. The bank would encourage local public agencies to “partner” with private for-profit entities to develop projects worth at least $75 million each. The intent is to leverage the investment through bonds and private sector participation.
Obama: “It’s Time to Act”
Now, as he prepares to take office, Obama has called his pending economic recovery plan an “early down payment” on the change his administration will bring to Washington, emphasizing his need for both Democratic and Republican support. “These aren’t just steps to pull ourselves out of this immediate crisis. These are the long-term investments in our economic future that have been ignored for far too long,” said Obama.
In his radio address, Obama stressed the urgency of the situation, saying the need for immediate action is not negotiable. Specifics of the plan are still being ironed out by his economic team. “We’ll be working out the details in the weeks ahead,” he said. “But it will be a two-year, nationwide effort to jumpstart job creation in America and lay the foundation for a strong and growing economy.”
Obama concluded with a promise to take action. “That is the chance our new beginning now offers us, and that is the challenge we must rise to in the days to come,” Obama said. “It is time to act. As the next president of the United States, I will.”
Are you working in infrastructure finance or clean technology? If you want to grow your career or your company’s bottom line, contact A.E. Feldman’s President, Mitch Feldman today!
