President Obama’s recent Jobs Summit has once again called to attention the need for immediate aid for the unemployment problem that is growing with each passing day. Called the Great Recession, our current economic crisis has caused more than 7.2 million job losses since December 2007.
Since its inception, three economic stimulus acts have been implemented to diminish the effects of the crisis. The Recovery Rebates and Economic Stimulus for the American People Act of 2008, Emergency Economic Stabilization Act of 2008, and the American Recovery and Reinvestment Act of 2009 were all passed to curtail this recession.
Despite this, the national unemployment rate has soared to 10.2 percent. In the St. Louis area, unemployment was higher than the national average at 10.9 percent. In the African-American community, the unemployment rate stands at 15.7 percent, with a labor force participation rate of 61.7 percent.
Following the Jobs Summit, Obama outlined a new plan to stimulate job growth. This plan features tax credits for small businesses and for businesses hiring new workers; investing in infrastructure to modernize transportation and communications networks; and creating jobs through energy efficiency and clean energy investments by providing incentives for consumers to retrofit their homes to become more energy-efficient.
Additionally, the new proposal will extend unemployment benefits and COBRA coverage, a $250 Economic Recovery Payment to seniors and veterans, and take steps to ensure that state and local governments will not have to lay off employees to balance their budgets.
Although our current financial situation is bad, it is nothing compared to the Great Depression where our nation experienced 25 percent unemployment and a 26.5 percent drop in the Gross Domestic Product. However, it is the worst recession that we have endured since World War II.
The first economic stimulus packages were instrumental in preventing the collapse of our economic system, but more programs are needed to give the U.S. economy the life support it needs to stand on its own. With a $1.4 trillion deficit looming in the background, Obama’s jobs creation bill is the best that he can do on a short notice with little excess resources.
To date, the American Reinvestment and Recovery Act has created or saved more than 640,000 jobs since its implementation. This month, we have already heard promising news that our monthly job losses are slowing but there is still much work to be done.
Even though we have a long way to go, I encourage everyone who is unemployed to continue looking for employment and not give up their search. There are many local agencies that are available to assist you in your search, including the Urban League, Better Family Life, MERS Goodwill and the Missouri Career Centers.
Just like the New Deal of yesteryear, the American Recovery and Reinvestment Act is good legislation in a series of acts that will be needed to help stabilize the U.S. economy. However, it is the first step into what is to become the reinvestment in America.
James H. Buford is president and CEO of the Urban League of Metropolitan St. Louis.
