Confidence building is 'job one'

Many detractors and conservative critics have already dismissed President Barack Obama’s speech on jobs and the economy before an unusual joint session of Congress tonight as being just another politically motivated opportunity to say the same things he’s said in many prior speeches.

We have been hoping that that this won’t be the case. This could be a real chance for the president to unveil surprising new turns that will bolster confidence among American investors, employers and consumers and win bipartisan support in a divided Congress. That’s what is needed, period.

Past presidents are often remembered for accomplishments that required them to go against the grain of their own political base, such as Richard Nixon defying the anti-communist, hawkish wing of his party in his overture to China, or Bill Clinton’s successful pursuit of welfare reform.

Considering the failure of the last $1 trillion stimulus to curb unemployment or propel the economy beyond the weak growth that has occurred over the last couple years, Obama needs to do something similar, rather than continuing on with talk of more Keynesian spending.

But instead, based on early reports, it appears that the mainstays of his proposal involve extending expiring jobless benefits and providing a one-year extension of a payroll tax cut for workers, which are worth about $170 billion of his overall $300 billion plan.

Why not provide a payroll tax reduction holiday for employers? They are the job creators, and they are people who need tangible, predictable incentives for hiring. The White House instead appears to be considering a tax credit for businesses that hire the unemployed. That’s good, but will it inspire confidence? Will it inspire investing in the future?

We can’t predict the entirety of what the presdident will say, but there are some things that we would like to hear and things we don’t want to hear.

Another fingerpointing sermon that directs blame in all directions except his own administration would be unfortunate.

Instead, it would be refreshing to hear the president give a frank assessment of the economy and to offer proposals with details on how they will be paid for and estimates of what the payoffs will be.

Good luck, Mr. President. The country is depending on you.