Since President Obama announced his American Jobs Act, economists have almost unanimously predicted that it would boost GDP and create jobs. Here is a sampling of what has been said.
- This headline at Bloomberg says it all, Obama Jobs Plan Prevents 2012 Recession in Survey of Economists. John Herrmann, a senior fixed-income strategist at State Street Global Markets LLC said “The plan ‘prevents a contraction of the economy in the first quarter” of next year.” Another quote from that article said ‘“The important thing to consider is: What happens if we don’t do anything?’ said Scott Brown, chief economist at Raymond James & Associates Inc. in St. Petersburg, Florida. He said the program ‘very well could” forestall a recession in early 2012.'”
- Moody’s Analytics – Mark Zandi predicted that the act would boost economic growth by 2% and create 2 million jobs, “Something like this is much needed” for an economy grappling with 9.1 percent unemployment, Zandi says. “The economy is on the edge of recession.”
- The Economic Policy Institute assessment of the jobs bill said, “So, how did President Obama do by our criteria? Very well, as the package provides a substantial boost to the economy in addition to continuing the important efforts already underway (providing unemployment compensation and the payroll tax holiday).”
- Macroeconomic Advisors thinks the effect will be significant, “We estimate that the American Jobs Act (AJA), if enacted, would give a significant boost to GDP and employment over the near-term.”
- Susan Wachter, a finance professor at the University of Pennsylvania’s Wharton School, figures that the Social Security tax cuts alone would add 1 percentage point to economic growth and create 1 million jobs next year.
- Michael Hanson, a senior economist at Bank of America Merrill Lynch and a former Federal Reserve economist, predicts similar benefits. He thinks the additional jobs would lower the unemployment rate by nearly half a percentage point in 2012.
- Menzie Chinn, an economist at the University of Wisconsin said, “the measures Obama proposed Thursday night ‘might prevent the economy from dropping below stall speed — at which point it would be vulnerable to another recession.'”
What this comes down to is — Republicans have to choose between politics and helping the American people, who are clamoring for Washington to do something about creating jobs. The GOP is up against a wall and this is a test of whether or not the Republican party cares at all about American workers. I think I know the answer, but I’m still clinging to a shred of hope that they will do what is right for the country.
PASS THE BILL NOW!
Cross-posted at Angry Black Lady Chronicles
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