President Barack Obama’s address to N.C . State worked as a way for him to sell the American Jobs Act and to revamp his campaign for reelections next fall, according to political science professor Andrew Taylor.
The president focused his comments on job creation for the middle class, especially in the small business sector.
“So what this jobs bill does is it cuts taxes for small businesses that hire new employees,” President Obama said.
According to Michael Walden, William Neal Reynolds distinguished professor and extension economist, the president’s multipronged plan has short-term incentives for small businesses.
“There are many pieces to his plan,” Walden said. “If a small business creates a job, there will be a tax credit and a cut in the payroll tax of these businesses.”
Walden said the bill may provide short-term benefits but lacks the scope to resuscitate the economy.
“You can’t make a business hire,” Walden said. “And if a business doesn’t feel the economy is stable enough, they will hesitate to take that risk. Businesses always look ahead and once they are confident to see consumer spending increasing, then they have a way to increase jobs.”
The president cited job growth in the corporate sector but said small businesses haven’t recovered — hampering job recovery.
According to Walden, the political reasons underline the significance of small businesses to the administration.
“That’s where there are a lot of votes,” Walden said.
According to Andrew Taylor, public and international affairs professor, there are a lot of votes from college students too.
“It’s a constituency that the president needs to energize again—that is young people,” Taylor said. “It’s with college students… he needs to reconnect himself and recognize that it’s young people that have paid for a large price of the economic problems for the past few years.”
Regarding this price, President Obama discussed college loans and debt and committed to increase Pell Grants, which are federally subsidized scholarships.
“We’re going to keep on doing the things that matter, like making sure that you guys who are here at N.C . State aren’t coming up with all that debt,” President Obama said. “That’s why we’ve made sure to increase student loan affordability.”
According to Taylor, the American Jobs Act tour functions as a way for the president to mobilize public opinion around his agenda.
“Presidents have traveled around the country to generate leverage for the congress to do their agenda,” Taylor said.
And Obama’s agenda is to pass this bill.
“So for those of you who did skip class today—I’ve got a homework assignment for you,” the president said. “Tell your congressperson that the time for partisanship and politics is over.”
Taylor said Obama’s lack of references to the stimulus was a smart political move.
“In the president’s defense, there is an implicit recognition that the old one didn’t work,” Taylor said. “This new bill is about half as much in terms of financial commitments.”
According to Walden, the bill would be a combination in tax cuts for some tax increases for individuals who earn more than $250,000 a year.
“But these tax cuts are not enough alone to motivate a company to make a job,” Walden said. “Small businesses need to perceive the need to create a job.”
The need to make jobs in the public sector, however, may be there according to Walden.
The president said the American Jobs Act would bring jobs to 19,000 construction workers in NC, working mostly on public works, including the 153 structurally deficient bridges the president cited in his speech.
According to Walden, that may be good news for engineers at the University.
“If there is an engineer graduating, let’s say a civil engineer, they might see a boost in their hiring possibilities,” Walden said.
For Kirsten McFarlane , a sophomore in fashion and textiles management, the American Jobs Act gives her hope for her future.
“I feel I will be positively affected,” McFarlane said. “I think it would give a lot back to my family and it will help the area as well. The timing is a little too late—but it’s better late than never.”
Citing students as a crucial constituency, the president encouraged students to exercise their political rights.
Brady Nemeth , a senior in international relations and president of the Libertarian Young Americans for Liberty chapter at NCSU , said the American Jobs Act is a euphemism for a second stimulus.
Young Americans for Liberty protested outside of Reynolds before the president’s address.
“The fact that we are borrowing 40 cents on every dollar to pay this bill, he says he is going to be paying for it in his deficit reduction plan but the debt reduction plan is based on projected growth,” Nemeth said.
To Walden, recovery doesn’t just mean expanding the small business sector, but going back to the 2008 housing bubble crisis.
“The housing market crashed and created this recession…causing $8 trillion in losses,” Walden. “There is no evidence yet the housing market is turning around.”
According to Walden, the president correctly has perceived that the public is not unhappy with the economy or job market.
“He is trying to make that a selling point,” Walden said.
But as the selling continues, the president said the only way to pass this bill is to practice democracy.
“The time for gridlock and games is over,” Obama said. ”The time for action is now.”