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By Robert Pozen

Published: November 3 2009 20:27 | Last updated: November 3 2009 20:27

The US unemployment rate is now close to 10 per cent and likely to stay that high all through 2010. Even if the economy begins to recover, job growth tends to be a lagging indicator. This is why the Obama administration is considering a tax credit for employers adding new jobs next year.

However, such a tax credit faces opposition on two grounds. First, employers may game the system to obtain tax credits for workers they would have hired anyway. Second, the cost of the tax credits may seem daunting in a time of rising budget deficits....