President Obama has proposed a new jobs bill and a plan to reduce Federal government deficits.  He says the latter will pay for the former.  The jobs bill will have a hard fight in Congress where Republicans seem determined to prevent any new taxes and Democrats are worried about the effect his deficit reduction plan will have on various benefits, especially Social Security and Medicare.  I have two specific questions to raise.

Obama’s jobs program promises to create new jobs by investing in infrastructure projects, the famous “shovel ready” construction projects of his “Stimulus Bill,”  investing in energy development, investing in research, and inducing the private sector to hire with tax breaks and relaxation of regulations.  However, we now hear that the largest energy development project financed by the “Stimulus Bill” has gone bankrupt and appears to have been an elaborate scam.  No doubt this will be used by many to oppose his new bill. 

More relevent, while stating he wants to encourage private business to hire more his administration has stopped the opening of a new Boeing aircraft factory in South Carolina that will employ 4000.  Hard to say you want to encourage private business hiring when you are blocking 4000 new jobs from coming on line.  The specific block is by the Federal Labor Relations Commission in response to complaints by unions representing employees at other Boeing plants, not the new 4000 workers.  If Mr Obama is serious he will remove this block to is aspirations to create jobs and claim credit for the move.

My other caution involves reduction of federal expenditures.  I hear many complain that Medicare D, the prescription drug benefit, was a mistake made by then President Bush.  He introduced the law to Congress which approved it without any specific funding other than to say it would be paid from the Medicare fund.  Now it appears that it may be on the chopping block in looking to cut Federal expenditures.  Now this is personal since I get my drugs through this program.  And indeed it is the most widespread Medicare program since most old folk take medications of various sorts.  I will argue vigorously against any attempt to cut this program.  Starting with why treat this differently than the other parts of Medicare?  It certainly is as important as are those.  The onlly real difference appears to be that this part of Medicare was introduced by a Republican president rather than a Democrat.