Congress uses the tax code to promote a broad range of policy objectives. Rather than directly spend government revenue on policy programs—or implement new regulation—Congress has enacted a series of tax provisions that effectively subsidize certain politically and socially desirable activities.

These “tax expenditures” take the form of deductions, exemptions, or credits to taxpayers who engage in the targeted activity. From a budgeting perspective, they are treated as foregone government revenue, rather than increased government expenditure.

Despite some recent improvement in the labor market, unemployment is projected to remain high for years to come. The jobs deficit, or the difference between the number of unemployed persons and the number of job openings, is 12.3 million. To deal with long-term unemployment and the soaring jobs deficit we need a job-creation agenda that includes both demand-side and supply-side measures: demand-side to boost growth and supply-side to deal with international competition and structural changes.

BERNARD L. SCHWARTZ ECONOMIC SYMPOSIUM

THE JOBS DEFICIT
The Challenge Of Putting America Back To Work

TUESDAY, OCTOBER 20, 2009 12:00 P.M.
THE MAYFLOWER HOTEL WASHINGTON, D.C.

KEYNOTE SPEECH
JARED BERNSTEIN
Chief Economist And Economic Policy Advisor To The Vice President

TO DOWNLOAD THE POWERPOINT SLIDES FOR THIS SPEECH, CLICK HERE.

INTRODUCTION:

Mr. Chairman, other Subcommittee members, I am Leo Hindery and I am Chairman of the Smart Globalization Initiative at the New America Foundation, where I spend my time on jobs and trade issues. Occupationally, I am an investor in media companies, and I was formerly CEO of AT&T Broadband and its predecessors, Tele-Communications and Liberty Media. It is an honor for me to appear before you.

I want to discuss our largely jobless economic recovery and desperate need for an all-of-government national manufacturing & industrial policy.