Here is a quote from one economist assessing the potential impact of the President’s jobs initiative. Not all economists agree of course; what’s new! Remember this, 2% added to GDP, 1.9 million jobs created and lower unemployment by 1%. No mention of adding to the deficit or adding to the troubles of the Social Security Trust Fund, but hey, all that is a long-term worry, right? Don’t you just wonder how they know all this? There is one glaring flaw in their economic models though, they can’t factor human behavior and apparently ignore past actions and results.
The weatherman says clear and cool ten days from now, eh!
“The U.S. is on the cusp of a recession,” said Mark Zandi, chief economist at Moody’s Analytics in West Chester, Pennsylvania. “The plan would go a long way toward stabilizing confidence, forestalling another recession and jump-starting a self-sustaining economic expansion.”
The proposal, which would raise infrastructure spending and cut in half payroll taxes paid by workers and small businesses, would add 2 percent to next year’s GDP, create 1.9 million jobs and lower the unemployment rate by one percentage point compared with current policy, Zandi said.
- Economists Give Obama Plan Thumbs Up (abcnews.go.com)
- Obama payroll tax cuts: Economists differ on how many jobs they’d create (csmonitor.com)