The unemployment rate continues to hover at 9.1 percent in the U.S. and 10. 5 percent in South Carolina as the creation of new jobs continues at a snail’s pace.
Winthrop University Economics professor Dr. Bob Stonebraker says it is interesting to note that, even though funds are available in the banking system for the private sector to borrow at low rates, businesses are choosing to stand pat because there is a prevailing feeling of uncertainty about the economy.
Stonebraker says if companies in the private sector continue to show a disinterest in borrowing and expanding, then the federal government must borrow and use those funds available at low-interest rates to create an effective jobs program to put people back to work in order to jump-start the economy.
Stonebraker says he believes a government jobs program to repair the nation’s infrastructure would not be detracting to the private sector. He says it would create employment opportunities using resources that would otherwise be sitting idle.
Stonebraker says in a robust economy there is the fear that for every dollar the federal government borrows, that’s a dollar that is unavailable to the private sector. However, he says in the present stagnant economy that kind of fear is unwarranted.
Cranking up his Midwest bus tour in Iowa Monday, President Obama said he will present a comprehensive jobs program to Congress. He said it was time for House and Senate members to put partisan politics aside and put the country first. Stonebraker says the fear in the market right now is that the gridlock displayed during the debt ceiling debate will continue, killing the White House’s attempts to get a jobs program passed. He said that would deal the economy yet another severe blow.