In the small yet bustling college town of Davis, California, jobs may be about to open up. Home to the northern-most campus of the University of California and over 20,000 students, Davis might soon see a revival in its business sector amid a severe continued world recession.
Following announcements of growth in the U.S. economy in the last quarter of 2009, the Obama administration stated its readiness to move forward with a program giving tax credits to businesses that hire new people.
The New York Times reports
The Obama administration seized on news of the latest upturn as an opportunity to push its proposal to encourage hiring. Companies would receive a tax credit of up to $5,000 for each new hire, and an additional credit on Social Security payroll taxes for raising wages — by increasing hourly pay or work hours, for example — in excess of inflation.
“Now's the perfect time for this kind of incentive because the economy is growing, but businesses are still hesitant to start hiring again,”President Obama said in Baltimore.
Such a program would likely be well-received in Davis, where a growing number of students seek to find work at a time when the University of California recently began a 32% student fee increase, an issue related to the budget crisis the State of California currently experiences.
The New York Times article elaborates further that the Obama administration's plan seeks to stimulate consumer spending, which was reported to have greatly dropped even with the economic growth that occurred in the final quarter of 2009.
Many students who receive financial aid at UC Davis will attest to the growth of the number of loans they receive annually, as compared to the number of federal and state grants. The Obama administration's incentive-laden plan for Davis' businesses could promote hiring more people in 2010, which could be good news for University students seeking an avenue to pay off student loans as they complete school or afterwards.
No evidence exists whether either the economic growth late last year or the Obama administration's plans to help restore consumer spending will necessarily encourage the University of California to hire more students on the Davis campus. Nonetheless, should the President and his administration succeed in revitalizing spending at any rate, there will probably be fewer students at UC Davis overburdened by the looming question, “How will I pay off these student loans?”