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Local political and economic experts react to Obama's speech

by Nishi Gupta
Idaho's NewsChannel 7

KTVB.COM

Posted on January 27, 2010 at 10:28 PM

Updated Thursday, Jan 28 at 10:29 PM

 

BOISE -- The country's unemployment rate is higher than it was last year, now sitting at 10 percent.  That means one in ten Americans is without a job.

To change that, the president introduced several new ideas.

Political and economic experts we spoke with say Americans did not need rhetoric, but rather specifics about how Obama's plans would change their daily lives for the better.

Health care has dominated President Obama's first year, however political experts have said it's the economy most Americans are concerned with.

“The people are generally looking at the pocketbook issues. This economy is suffering and there is concern that it might even get worse. People who have lost their jobs are very anxious and those who are worried about losing their jobs are very anxious," said BSU political professor Dr. Jim Weatherby

And that was not lost on Obama, who said the country has shed seven million jobs over the last two years.

He said if the U.S. can double its exports, it would create two million jobs.

NNU economics professor Dr. Peter Crabb says that is an ambitious goal.

"Doubling our exports will not only take what we do here by creating export like products and job but it's going to take big recovery around the world," said Crabb.

The president is also prepared to offer tax credits to small businesses for those who hire new workers or raise wages.

"While we're at it let's also eliminate capital gains taxes on small business investment and provide a tax incentive for all large businesses and small businesses to invest in new plants and equipment," President Obama said.

Economists say those incentives could have an immediate effect.

"Small businesses employ most of the people in our country and so any new incentive that small businesses have to invest is a positive for the economy," Dr. Crabb said.

Another presidential proposal to strengthen the economy is to educate citizens.

His ideas include offering incentives, such as a $10,000 tax credit for a university education. 

Crabb say it's an expensive idea, but not a bad one. He says economists generally believe education is a long term investment.

"Because it improves our skills, which improves our productivity. And higher productivity leads to economic growth," said Crabb.

And another way to cut spending: the president said he wants to eliminate unnecessary expenses in the federal government.

He proposes a three-year freeze starting in 2011.

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