Two different takes on job creation

With unemployment at 10% despite the biggest stimulus package ever, there is more and more talk in DC about a second stimulus focused on job creation. In the last few days WSJ has run two op-eds from very highly respected economists that approach policies to create jobs from very different frameworks. Alan Blinder of Princeton (and former vice-chairman of the Fed) examines public employment and a tax credit for new jobs. Blinder points out that the tax credit would be very hard to implement because there would be countless ways for employers to game the system (e.g., fire workers and hire them back). Michael Boskin of Stanford (and former chief economic adviser to Bush 41) advocates a six percentage point cut in FICA tax. Boskin claims this will create much more stimulus than the package approved last February at half the cost.