The American Jobs Act (Obama Jobs Bill) Should be Passed

I will first establish my own case and then offer my rebuttals to my opponent's. The American Jobs Act is a bipartisan piece of legislation aimed at providing strong economic growth to many Americans. I offer the following 3 contentions, showing that this legislation will indeed be beneficial to the United States of America. 1) Payroll Tax Cuts 2) National Infrastructure Bank 3) Modernizing our nation's educational system. Contention 1: Payroll Tax Cuts Today, when the United States is growing at a sluggish rate, and 14 million Americans are out of a job, the United States Congress must look to tax cuts, including Payroll tax cuts, in order to revitalize the economy. According to Greg Mankiw, professor at Harvard University, "the payroll tax cut goes entirely to the worker, This increases work incentives, but the main motivation is probably to increase take home pay and consumer spending". These payroll tax cuts will be beneficial, as they will logically increase consumer spending. According to Goldman Sachs, "The tax proposal would represent a significant more positive fiscal outcome for 2011 than we and most others have been expecting, including a one year reduction in the pay roll tax". The simple fact of the matter is, these payroll tax cuts will bring money back into the hands of consumers everyone and this will directly benefit the economy. Contention 2: National Infrastructure Bank The nation faces two large problems today: 1. Unemployment remains fixed at 9.1%. 2. The nation's infrastructure is in a state of utter decay. The National Infrastructure Bank represents a uniting solution to both of these problems. A. A step toward infrastructural development at this time is crucial. B. The economic and domestic impacts of a National Infrastructure Bank. But first, I offer 2 observations in this contention. 1) The United States of America must begin to view infrastructural development not as spending, but as an investment. An investment into the people of the United States of America and the nation itself. Infrastructure is an investment, not spending. 2) The cost of fixing this nation's infrastructure will be enormous, an estimated 2.2 trillion dollars according to the American Civil Society of Engineers. However, the cost of doing nothing is even higher. Subpoint A: A step toward infrastructural development at this time is crucial. The nation is at a tipping point. Our infrastructure is in a state of ruin across the nation. The American Society of Civil Engineers gave the United States an overall grade of a D on infrastructure. They also estimate this: -7 billion gallons of water are lost per day due to leaking pipes. -25 percent of bridges are deficient. -1/3 of all major roads are in poor or mediocre condition. According to the U. S. Department of Commerce, in 2008 and 2009, our aging infrastructure cost the economy nearly $2 trillion dollars ($2,000,000,000,000). Something must be done, and something must be done now. The national Infrastructure bank represents a solution. In order to analyze whether or not this bank will be successful, let's look toward the California Infrastructure and Development Bank. According to Stanton C. Hazelroth, in testimony given to the House Ways and Means Committee, the California Infrastructure Bank was started with only 181$ million dollars in 1989, but since then the bank has financed more than $220 billion dollars in projects. If we see the same benefits from the National Infrastructure Bank, we could definitely see a turn around in this nation's infrastructure. Subpoint B: The economic and domestic impacts. At a time of sluggish growth, the National Infrastructure Bank represents a clear venue in which to grow the economy. According to the U. S. Department of Transportation, every $1 billion invested into infrastructure supports nearly 35,000 American jobs. At a time when unemployment is stuck at 9.1%, we need this jobs, and we need them now. In addition, according to Mark Zandi, chief economist at Moody's Analytics, every dollar spent on public infrastructure yields a 159% return into the gross domestic product. The National Infrastructure Bank will be critical to repairing our nation's aging infrastructure, while at the same time producing hundreds of thousands of jobs and contributing a 159% return into the economy. Contention 3: Modernizing education. Unfortunately, more and more teachers are being laid off. Fortunately, the American Jobs Act will help prevent the layoff of 280,000 teachers, police men and women, and firefighters, according to the White House Press Release on September 8th, 2011. According to the White House Jobs Act Slide Show: "44% of principals say that the poor conditions of their schools interferes with their students' learning. 1 in 3 public schools could be repaired or modernized". This act will be instrumental in revitalizing our education sector by keeping teachers on the job, rebuilding public schools, and giving strength to education. In conclusion, because payroll tax cuts will be beneficial, and because the nation needs an National Infrastructure Bank, and because education must be modernized. I affirm the legislation. Looking on to my opponents case today: 1. My opponent openly admits tax cuts are a solid venue to economic growth. He contends that this isn't the best way to achieve growth. While I agree there are better ways to grow, this is still a solid and viable venue and a time of sluggish economic growth we cannot turn a blind eye to a beneficial policy. 2. The $62 billion is a necessary investment if we want to break the "Cycle of poverty" that plagues the lower classes. My opponent contended that the best way is expand charter schools and give an opportunity to escape a failing public school, however he has failed to realize that this bill will revitalize public schools. 3. My opponent fails to realize the operation of a National Infrastructure Bank and what it entails. The government only gives the seed money, it does not handle the bank after it has been given the seed money. The National Bank runs off of private sector investment and will not have typical arbitrary government regulations. 4. Unemployment benefits do not encourage laziness, as the far majority of recipients realize benefits will be working already toward finding a job. Unemployment benefits, for the most part, help those who are simply down on their luck, not the chronic couch potato. 5. Having teachers, police officers, and firefighters does not crowd out the private economy. Yes, we are Capitalistic, however there are certain areas in which the government must preform critical duties, education and security is one of those areas. 6. This part of the bill, rebuilding 35,000 schools, is not stimulus, it is a necessary expenditure. See my above White House evidence. 7. While I'm not contending not to lower the corporate tax, your plan doesn't deal anything with what you are arguing against. Again, infrastructure is an investment, not spending. 8. See my second contention. 9. Uncontested. 10. Again, your plan does not respond to the actual argument, you just explain a different way to achieve economic growth. The simple fact of the matter is more and more businesses are discriminating unnecessarily against unemployed workers and we must do something to combat this. 11. Tax must be raised in order to pay off our debts, and millionaires have some extra money. While I agree with some parts of your plan, you have not rebutted the actual arguments of the American Jobs Act. For the above reasons, I must urge an affirmative ballot today. Thank you.