The political cost of a weak jobs program

A jobs program that is too small is politically dangerous. If unemployment is still a big problem even after this program is in place, it will look like two separate programs -- which in their totality are not large enough to get the job done -- have failed to generate new jobs. That's not only costly in this recession -- people who could be employed won't be -- but it will also undermine the case for similar programs in the future. This removes an important policy tool from the government's arsenal, even though a jobs/stimulus program large enough to make a dent in the problem would likely work.

--- Mark Thoma, 12.8