How do you create jobs in America. Perhaps a start would be to look at the tax code. Since we have been legislating behavior for years in the Code, we can use it to stimulate the economy by targeting a specific problem, unemployment. So, how do we do that? First, our manufacturing sector is about down to scraps. Add in a targeted jobs tax credit for manufacturers. That gives companies an incentive to hire employees in the manufacturing arena and to potentially expand operations back in the states. Second, we need new products and we have an R&D credit, but lets put a real bounty on these green technology things. You get a bonus R&D credit for develop an automobile engine that does not run on carbons the fuel source is either renewable, perpetual or easily obtainable. Doing this would give the Fords, Chyslers and GMs a bonus incentive to develop engines which really will remove our dependence on oil and reduce carbon emissions. Stimulating the housing market is important. A quick way to do so is to ditch the passive loss rules. That way, if you buy a rental property and have a negative cash flow, you get to reduce your taxes even if you make a lot of money. This will increase available rental properties, effectively lower rental rates and will soak up the foreclosed homes and bank inventories. It will also give people incentive to develop real estate again and perhaps get the housing sector jump started. Will this work? It worked in 1981 when Reagan took office. He then reigned it in in 1989 causing a recession of sorts, but if there was a known sundown date on the benefits, people could choose what to do. Lastly, if you’re really serious about jobs, you cut the corporate tax rate to 5 percent and raise the dividend rate back to normal levels. If you do this, its revenue neutral and companies will have the incentive to repatriate dollars and perhaps jobs to the United States from tax advantaged places like Ireland. I doubt that our President will go that way. But this would be a recipe to increase jobs in America that has worked. The Great Depression ended pretty much only because World War II broke out and all industry was nationalized for the war effort. I don’t think that is an appropriate option at this time to help the economy. All the CCC projects did nothing to really stop the depression except to put a few dollars in a few pockets. Just to put an asterisk on this, consider that during the Great Depression, we also had the Dust Bowl phenomenon. Our midwest is not far from that these days. If our agricultural sector breaks down our economy could sink much further much faster. So, its time for some bold action.