The impact higher taxes and welfare spending could have on US jobs

US President Barack Obama raised taxes for the very rich (photo:dpa)
US President Barack Obama raised taxes for the very rich (photo:dpa)

US President Barack Obama may have scored a political victory when he made good on his election pledge to raise taxes for the very wealthy and increase welfare spending at the beginning of 2013. But critics say it was much less of a victory for the economy. It leaves in place a fiscal tightening while doing little to arrest the escalating national debt in the long term. And, rather than help the poor, it could reduce the number of job opportunities which are already in scarce supply.

THE US job market remains severely depressed, with more than 12 million Americans out of work.

The unemployment rate, which had been stuck at 7.8 per cent since Se...

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