EDITORIAL: Obama needs to find economic solutions for U.S.

President Barack Obama talked passionately about creating jobs and jumpstarting the economy in a speech to a Washington think tank Tuesday. We paid particular attention because the Pee Dee has been devastated by unemployment, with Chesterfield, Dillon, Marion and Marlboro counties suffering with rates higher than 17.5 percent.

The Pee Dee’s focus in the near future must be on job creation and economic development.

The Interstate 95 Corridor study unveiled last week by Francis Marion University and South Carolina State University offered the promise of solving problems in the future, but the study will not feed or clothe thousands of families right now.

With a backdrop as dire as ours, it’s natural we want to support the free flow of ideas about job creation.

Obama announced another round of spending, perhaps as much as $150 billion, in an effort to create jobs. He also was trying to nudge experts and policymakers into thinking about solutions, beyond more federal spending, as quickly as possible.

“We avoided the depression many feared,” Obama said, quickly adding, “Our work is far from done.”

The nationwide unemployment rate stands at 10 percent, a statistic Obama called “staggering.” Imagine what he thinks about the widespread joblessness in the Pee Dee, home of one of his top supporters, House Majority Whip James Clyburn, D-S.C.

Obama said the federal government had to spend its way out of the recession and proposed new spending on highways and bridges, small business tax cuts and retrofitting homes to make them energy efficient (“Cash for Caulkers”). He encouraged new stimulus spending to keep teachers, police officers and firefighters from losing their jobs.

The biggest problem with Obama’s ideas: They will cause the deficit to rise even more. Obama wants to spend more in Afghanistan, provide universal health care and provide more stimulus funds. But it makes us wonder about the possibility of future tax increases, a horrible side effect. Any proposal to raise taxes could send the economy into depression.

“At least the president’s proposal will result in one new job – he’ll need to hire a magician to make this new deficit spending appear fiscally responsible,” said Sen. Judd Gregg, R-N.H., of the Senate Budget Committee.

U.S. Rep. John Boehner, R-Ohio, said Obama is “out of ideas and out of touch.”

We do not think Obama is out of touch. We think he understands the hardship of living without a paycheck. We know he’s in tune with Americans around the holidays, when far too many families will have little or nothing to put under the Christmas tree.

More than 3 million jobs have been lost since Obama took office. Yes, he inherited the worst economy since World War II. But it’s time for him to stop blaming the Bush administration and find solutions.

The president needs to prioritize. If he puts off health care reform or eliminates energy tax proposals, it’s unlikely he will have 60 Democrats in the Senate to pass it after the 2010 election. If he delays sending more troops to Afghanistan, it will make it harder to destroy al-Qaida and the Taliban.

The decision to loan banks and automakers money to survive the recession was a controversial but necessary step. Now, banks are paying back about $200 billion of the money they borrowed from the Troubled Asset Relief Program. Obama, who acknowledged the perception of bailing out fatcats, said the repaid loans “gives us a chance to pay down the deficit faster than we thought possible and to shift funds that would have gone to help the banks on Wall Street to help create jobs on Main Street.”

A tax break to all businesses that create jobs would be a boost to the economy. In addition to offering Americans a $12,000 tax break to insulate their homes, how about meaningful tax breaks for every new job businesses create in 2010? How about freezing taxes on individuals and businesses until unemployment dips below a certain percentage nationally? How about an extension of unemployment and COBRA benefits? How about forcing mortgage companies that accept federal bailout funds to renegotiate terms with homeowners who are close to losing their homes?

The fear of too much government intervention is complicating efforts to create jobs. Sooner or later, the free market will provide opportunity.

The Pee Dee cannot afford to wait much longer for a recovery. We encourage Obama, Clyburn and other political leaders to redouble their efforts and consider every reasonable idea.

— Unsigned editorials represent the views of this newspaper. Editorial Board members are Mark Laskowski (regional publisher), James Bennett (regional editor), Sam Bundy (sports editor), Kimberly Ginfrida (news editor), David Johnson (regional circulation director), Charles Tomlinson (Lake City News & Post editor) and Jackie Torok (metro editor).