The U.S. has been in a jobs emergency since at least 2008. The cause of the crisis -- too little demand -- isn’t mysterious, and neither are the solutions. We could invest in infrastructure to create construction jobs. We could give tax breaks to employers who hire new workers. We could restore the payroll tax cut to workers so they have more money to spend. We could help state and local governments hire back some of the employees they laid off during the recession. Macroeconomic Advisers, an economic consulting firm, found that the American Jobs Act, which contained many of these policies, would have created 2 million jobs.
Donald Marron, founder and chairman of Lightyear Capital LLC, said Standard & Poor’s cutting of the U.S. debt rating was a response to Washington politics, not an indication of the country’s economic condition.
Oil companies, manufacturers, advertisers and real estate investors warned that a proposal from Senate Finance Chairman Max Baucus to slow down deductions for capital assets could raise the cost of investment.
Republican lawmakers have played down the significance of hitting the debt limit, saying the U.S. can avoid default by putting aside funds to pay bond holders. Economists affiliated with the party aren’t so sanguine.
After 12 years of Mayor Michael Bloomberg boosting New York’s finance industry, Wall Street is adjusting to the almost inevitable election of Bill de Blasio, who is campaigning against income inequality and calling for higher taxes on the rich.