One of the crucial pieces to solving our country’s debt crisis is the need to put people to work. As the economy continues to sputter and the American Recovery and Reinvestment Act (ARRA) is in its final stages, there is a need for Washington, DC to implement a real jobs plan.
With almost 14 million people unemployed, there is a need to put people to work. In addition to all the other benefits of people working, the U.S. economy reaps the proceeds of employed people paying taxes, purchasing products and services, and not drawing unemployment insurance benefits.
Harvard University economist and former National Economic Advisor, Lawrence Summers, has estimated that each additional one percent of economic growth will close the deficit by $400 billion (Center for American Progress, Recommendations for the Special Joint Committee on Deficit Reduction 2011).
Congress should recommend the extension of a payroll tax cut, the continuation of extended unemployment insurance benefits, and policies that will create jobs (and additional growth).