On The Arena at POLITICO:
"In November, voters are going to be thinking about jobs. If the unemployment rate is over 10.0 percent, as is widely projected, there is little doubt that they will blame the Democrats. This means that he must start generating jobs quickly. Fortunately, we know how to do this. If the United States were to go the route of work sharing, using flexible employment credits to provide an incentive to employers to reduce work hours while leaving pay unchanged, then we can quickly get back to more levels of employment.
"The basic logic is very simple. If everyone works 5 percent fewer hours, then we need 5 percent more workers. That would translate into 7 million additional jobs in an economy with 140 million workers. We don't have to speculate as to whether this policy can work. We already know that it can. Germany has suffered a sharper drop in output than the United States, yet its unemployment rate is 7.6 percent, the same as it was before the downturn. In the United States we are experiencing the recession with 15 million people unemployed, in Germany they are experiencing the recession in the form of shorter workweeks and longer vacations.
"President Obama can also do something to make the (honest) deficit hawks happy. He can impose a tax on financial speculation. The sort of short-term trading that helped get us into these mess. A modest tax on this speculation can easily raise more than $1 trillion over the next decade, while helping to make the financial markets more stable.
"Resetting towards an agenda that creates jobs quickly and kicks Wall Street speculators in the face will make President Obama and the Democrats very popular next November."