About those jobs
March 1, 2011 Leave a comment
A couple of totally non-partisan economic analyses (including Goldman Sachs) of late have concluded that Republicans’ deficit cutting plans will actually be huge job-cutting plans. And this is from the party that supposedly ran on a “jobs” agenda. How are Republicans getting away with not having a media firestorm over this? Is it because Democrats are letting them get away with it. Damn, they should be hammering this hard. From the Post:
A Republican plan to sharply cut federal spending this year would destroy 700,000 jobs through 2012, according to an independent economic analysis set for release Monday.
The report, by Moody’s Analytics chief economist Mark Zandi, offers fresh ammunition to Democrats seeking block the Republican plan, which would terminate dozens of programs and slash federal appropriations by $61 billion over the next seven months.
Zandi, an architect of the 2009 stimulus package who has advised both political parties, predicts that the GOP package would reduce economic growth by 0.5 percentage points this year, and by 0.2 percentage points in 2012, resulting in 700,000 fewer jobs by the end of next year.
In response to Ben Benanke’s essential agreement with this, Kevin Drum goes off:
Maybe it will cost a point of GDP, maybe it will cost half a point of GDP. But considering that the economy is still sluggish and unemployment is extremely high, why are we considering budget cuts that will have any negative effect on jobs and growth? Especially cuts in the only part of the budget that isn’t a long-term problem?
That’s the big news from Bernanke’s testimony: not that he thinks other estimates of job losses are too high, but the fact that he agrees the Republican budget plan will cost jobs and slow growth. That’s coming from a Republican Fed chair! How much more evidence do we need that our current budget cutting mania is insane?
I don’t know who’s more to blame, Obama, Democrats in Congress, or the media, but any way you look at it, this is just nuts. The Democrats needs to change the debate on this and they need to do it now. Maybe the attention focused on a possible government shut-down will enable them to do that. If Obama has any sense– and he does– the showdown over the government shutdown needs to be about jobs, jobs, jobs.
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