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Many economists like Obama’s jobs plan, but worry about obstructionists in Congress

HERE‘s the word from ABC News:

President Obamas’s $447 billion American Jobs Act is getting mostly solid marks from business experts and economists, who worry that a divided Congress may be unable to pass anything meaningful in time.

And HERE‘s the word from Politico: 

A top economist says President Barack Obama’s job plan will likely add 1.9 million jobs and grow the economy by 2 percent.

Mark Zandi, chief economist at Moody’s Analytics, also said Obama’s $447-billion plan would likely cut the unemployment rate by a percentage point.

And HERE‘s the word from the non-partisan Economic Policy Institute:

President Obama’s jobs plan, if implemented, would boost employment by around  4.3 million jobs (yes, 1.6 million of those jobs would come from continuing temporary policies that are already in place and supporting the economy today, but the new initiatives alone would generate 2.6 million jobs).

And HERE‘s the word from Reuters:

President Barack Obama’s jobs package could lift economic growth by one to three percentage points in 2012, add well over one million jobs and lower the unemployment rate by at least half a percentage point, judging by early estimates.

(Snip)

Analysts at Capital Economics estimated that Obama’s plan is equivalent to 3 percent of U.S. GDP and should be enough to add significantly to 2012 growth if passed in full by Congress.

The biggest single boost could come from a $250 billion reduction in payroll taxes. Obama proposes extending an existing 2 percent cut in the payroll tax and increasing its size to 3.1 percent for workers, and adding a cut for employers.

But, of course, none of this will matter to the pathological Obamaphobes.

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4 Comments

  1. Yet he doesn’t know how it will be paid for. So it isn’t so much of a plan as a half a plan isn’t it?

    I am not sure how you can assess the benefit of half a plan.

    http://money.cnn.com/2011/09/08/news/economy/obama_stimulus_plan/index.htm?hpt=hp_c1

    How he’d pay for his plan: Obama vowed his plan would be fully paid for and asked the new debt super committee, already charged with proposing between $1.2 trillion and $1.5 trillion in debt reduction over a decade, to add the cost of American Jobs Act to its goal.

    So presumably if the panel did that, its new target would move closer to $2 trillion.

    The president said he would submit his debt-cutting plan to the super committee on Sept. 19. He characterized it as “ambitious – a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run.”

    His recommendations will include additional spending cuts that would phase in gradually, “modest adjustments” to Medicare and Medicaid, and a tax reform plan ‘that asks the wealthiest Americans and biggest corporations to pay their fair share.”

  2. Here is the take from the WSJ:

    http://online.wsj.com/article/SB10001424053111904836104576558931723540102.html?mod=WSJ_Opinion_LEADTop

    But you have to really, really believe in hope and change to think that another $300-$400 billion in new deficit spending and temporary tax cuts will do any better than the $4 trillion in debt that the Obama years have already piled up.

    We’ve had the biggest Keynesian stimulus in decades. The new argument that the 2009 stimulus wasn’t big enough isn’t what we heard then. Americans were told it would create 3.5 million new jobs and unemployment would stay below 8% and be falling by 2011. It is now 9.1%. But this stimulus we are told will make all the difference.

    Mr. Obama spoke last night as if he is a converted tax-cutter, asking Republicans to expand and extend the payroll tax cut that expires in December for one more year. Along with tax credits for certain businesses that hire new employees, he says this will cut unemployment, and no doubt it will lead to some more hiring.

    But what happens in 2013 when those tax rates expire and Mr. Obama pledges to hit thousands of those same small businesses with higher tax rates on income, capital gains and dividends? He seems to think businesses operate only in the present and will ignore the tax burdens coming at them down the road. This is the same reasoning that assumed that postponing ObamaCare’s tax and regulatory burdens until 2014 would have no effect on business hiring in the meantime.

  3. We have to pass it now! You know before it is even written.

    “Valerie Jarrett, White House senior adviser, talks with Rachel Maddow about the significance of President Obama’s jobs plan to his presidency and what his plan is for its passage.

    Jarrett implies the complete jobs bill has not been fully written yet, however it will be by next week and the President will submit it to Congress for cost scoring.

    “Congress should pass this bill right now,” Jarrett said on MSNBC. No more than one minute later, Jarrett said the White House is still writing the bill and it will be submitted to Congress next week.”

    http://www.realclearpolitics.com/video/2011/09/10/valerie_jarrett_no_jobs_bill_yet_the_president_is_going_to_draft_the_legislation.html

  4. http://www.nytimes.com/2011/09/10/business/economy/in-the-real-world-will-the-jobs-plan-make-a-difference.html?_r=1&pagewanted=all

    Those dimwitted businessmen, they should listen to the experts.
    How dare they!
    Why can’t these businessmen be as enlighted as Mr. C?

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