Obama's stimulus

US President Barack Obama has proven once again just how capable he is of putting up a fight when his back is against the wall.

In a move that differs from his bid to reform the US health care system, or the last-minute adjustment of the US debt ceiling - both of which were decided by Congress - Obama himself has now proposed a law aimed at creating jobs and stimulating the economy.

There is no question that this proposal is necessary. US unemployment is currently at just over 9 percent, and fears of a new recession are looming. Obama's care package would contain a collection of different measures: the amount of social security taxes paid by employers and employees is to be reduced, income tax for workers and small companies will be lowered, the country's outdated infrastructure will be improved, schools renovated and new teachers hired.

Reasonable suggestion

There is something for everyone in Obama's proposal - for the conservative fanatics bent on lowering taxes as well as the leftist social security fans. It will even be paid for. The so-called congressional Super Committee, which also met on Thursday, is to take care of this, as well as reducing the US national debt by $1.2 trillion (863.3 billion euros).

All in all, Obama's proposal is a reasonable suggestion not to be overlooked. However, in Washington at the moment, it is precisely reason that is lacking.

That reason is no argument in this atmosphere, described by Obama himself as a "political circus," is a consequence of the disunity in the capital. The unwillingness to compromise is seen as a virtue - on both sides of the spectrum. This is not beneficial to the welfare of the country.

Ulterior motives

But, with that being said, it's not as if President Obama is free from such tendencies. In only 14 months presidential elections will take place in the US and Obama doesn't have much time before his campaign will have to begin again. His approval ratings are bad at the moment; economic worries and above all unemployment are what analysts say will dominate political campaigns.

With Thursday's speech and his concrete suggestions Obama can now point his finger at the others, if the political theater continues and the measures proposed by Obama aren't passed - in part or in whole. It may sound cynical, but Obama could be speculating that precisely this will happen - something which could be advantageous to him on the campaign trail.

Even if the measures are indeed passed and implemented, they won't bring any short-term stimulus relief. No government can force its workers to spend tax cuts immediately and regenerate the economy. What's more likely is that workers will use the funds to pay off housing debts.

Obama's suggestions are good and correct, but they will come up short if he believes they will provide quick relief for the US economy. The problems are too severe - debt caused by uninhibited spending, deregulation and two wars - to be corrected by a $450-billion draft law.

For Obama's election campaign, on the other hand, it's a great first step.

Author: Christina Bergmann, Washington / glb
Editor: Martin Kuebler