Is President's New Initiative Another Stimulus?
Critics question Obama's new $500 million plan to invest in technology
- Duration 6:41
- Date Jun 24, 2011
Critics question Obama's new $500 million plan to invest in technology
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President Obama and -- in new idea for job creation today the president touring an engineering center at Carnegie Mellon University earlier.
In urging a 500 million dollar investment in so called cross cutting technologies that will boost to -- -- manufacturing.
An America where our businesses leave the world in new technologies.
Like clean energy.
Where we work together.
Democrats and Republicans to live within our means to cut our deficit and debt.
But also to invest in what our economy needs to grow.
The president wants part of that 500 million to go through the National Science Foundation and -- go to research projects.
The many critics are questioning that idea especially after this the shrimp the became the crustacean the poster crustacean.
For wasteful government spending projects costing taxpayers half a million dollars to fix what syndicated radio -- here to talk to us about it also -- -- -- -- You bet there sure are right Korea good idea by the president he knows he's got top jobs have been -- do you think -- 500 million idea will be today.
We'll tell you what here's the challenge to the White House is facing right now they are terribly frustrated.
One because they're doing everything that they can't create jobs for the American people.
But secondly because the jobs they've had they have created they haven't gotten a lot of credit for.
I mean take a look at the past six months alone they've created over a million jobs in the private sector we've had fifteen straight months of job creation.
Two point one million jobs since -- come into.
Office and 2009 but still those from -- tremendous amount of work to be done.
What we see here the president's announcement today is an effort and a long line of efforts that have been undertaken over the past several months.
To reenergize manufacturing in America look we've had tremendous growth since the Big Three automakers came back on line.
They're hiring but what the president wants to do was to get the smartest people in the country and room to have a conversation.
To give us creative ideas about how we can spur job growth in the manufacturing sector and in other growing -- And Jason want to bring you in here because of course critics of the president -- said he seems to be throwing a lot of money a lot of different projects.
You know this when he can afloat through an agency that brought pressure up on a treadmill it's had plenty of criticism.
Cell what are we to make this.
-- smacks of more crony capitalism brawl that job creation and the fact is the unemployment rate is still over 9%.
Unemployment claims actually went up last week.
So we've got a very anemic recovery with all of the stimulus spending and all of this substitution of government investment decisions.
For private sector investment decisions I'll give you one example the president wants to take away an oil tax break he calls accelerated depreciation -- actually what it.
What amounts to accelerated depreciation.
If you want to give manufacturing to break why are you taking away accelerated depreciation from a company.
That is very very capital intensive the oil industry.
And then turning around a saint but if you make high powered batteries will give you 500 million dollars that is picking winners and losers.
And that's why we're in the mess were in.
That the administration seems to have the policy up.
Raising taxes and regulation on all businesses and then handing out certain favors to government picked investments that's not the way to grow an economy.
-- according -- balances tensions because there -- a lot of folks within the business community who say they don't feel like this administration is very friendly to down.
And yet the president is directing specific money to specific projects an often it is alternative energies and other things like that.
I'll tell you what anybody who has the nerve to come on national television and defend tax breaks for oil companies that are making record profits up.
More power to yet but I tell you this.
The president is a future for thinking president and what he considers right now.
Is what -- jobs that are gonna be available to the American people in the future what of the industry's.
That are cutting edge that are gonna help us move forward of the country those aware the end the president the administration.
Is making investments right now.
Rebuilding our infrastructure and taking a look at the Green economy.
Definitely moving towards a moving -- -- should say from.
Fossil fuels will moving away from taking -- local -- energy from folks who don't like us and -- -- to kill us.
And so right now the president is looking very closely at what are the sectors that have the greatest growth potential in the future that are gonna create jobs.
Well and preparing -- prepare the American L'Oreal proving my -- -- there was a lot of respect your proving my point the government is picking what Green technologies daylight and by the way.
The oil industry net margins are about even with the S&P 500.
And the Green companies like GE had no income tax liability so we've got favored companies favored technologies.
And the rest of the manufacturing sector be damned that is the problem.
Jason what's wrong with investing in the future though because -- Corey talked about the president has an has said recently it's got to be education it's gotta be certain technologies that we don't have enough skilled workers in the US.
They were having go outside of our borders to hire people from other countries.
What's wrong with -- Because it's Shannon is based on a fatal conceit that government bureaucrats know where to put the money.
Governments don't invest for an economic return they invest for a political return.
And that's the fundamental problem we want more capital formation let's lower the second highest corporate tax rate in the world.
Let's let all businesses retain more money to invest.
You can do a number of things for instance we've got businesses sitting on almost a trillion dollars overseas you can bring those profits back and invest them in in infrastructure but you do that you are taxed twice once overseas and once in America -- you've got a lower if you've got to improve the business climate for the entire manufacturing the entire business sector.
And not just big winners and losers and tax and regulate the heck out of the rest up.
-- very quickly very quickly here that I wanna get in last -- Here's the here's the real issue right now the economy is changing very rapidly.
We have American companies sitting on about two trillion dollars -- liquid assets they're not investing -- not hiring workers why because there's some level of uncertainty out there right now.
What the president is doing with these series of events that he's holding these conversations that he's having is saying look.
We have an appreciation for where we're going in the future.
This is where we need to make those investments because it's gonna help us in the short term.
And it's gonna help us transition the prosperity that we've seen the comeback on Wall Street is gonna help us transition to main street as well.
All right well we know that it's essentially you know private and governor are private -- -- that create jobs not necessarily the government will see if this partnership works together this time.
To get the job everybody wants to see Jason -- in those private -- into these right now our Roland because of all the government act.