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Politics
GOP Spending Cuts Would Kill 700,000 Jobs
A new report says the Republican's proposed spending cuts would result in the destruction of 700,000 jobs through 2012.
The report by Moody's Analytics chief economist Mark Zandi claims 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, according to a report in The Washington Post.
Republicans want to cut $61 billion in spending over the next seven months, slashing dozens of programs.
Republicans are dismissing this report, as well as a previous report with even more dire predictions, saying they are the product of the same flawed economic thinking that produced President Obama's $814 billion stimulus package, which was supposed to keep unemployment below 8%. Instead, the unemployment rate has hovered at or above 9% for nearly two years.
On Monday, Republicans were particularly critical of Zandi, who is a registered Democrat but advised Republican John McCain's 2008 presidential campaign. He later became one of the most influential advocates for government economic stimulus.
"The fact that a relentless cheerleader for the failed 'stimulus' - which the Democrats who run Washington claimed would keep unemployment below eight percent - refuses to understand that ending the spending binge will help the private sector create jobs is sad, but not surprising," said Michael Steel, a spokesman for House Speaker John A. Boehner.
Republican leaders say cutting government spending will create jobs by removing the fear of higher taxes from the minds of business owners and entrepreneurs. Democrats disagree, and so do at least two independent reports.
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Comments
yeah... right....
It's amazing how they calculate the jobs lost. Probably the same way they calculate the unemployment. LOL
Did you ever look at Table A-15 on the DOL website... More people keep losing jobs over the past couple of years than companies have been hiring for permanent positions. Yet the U-6 Total unemployed keeps dropping.
At least the stimulus keeps the bankers happy with nice bonuses. Not that they spend it here in America... no, a nice vacation to the Riviera on a million dollar bonus goes a long way.
Wake up everyone. Pay attention to what is going on here. You finally have a governor that is stepping up to the plate in WI. I am not from WI, but I sure respect the guy for sticking up for what needs to be done for the state and people of the state. Sure it is going to make some teachers unhappy. But get up and look at what they get paid, look at their benefits, look at their retirement . Then look at the kids today... Are they really getting the education we are paying for? You answer that one.
I believe they should be paid for performance. Then they can join most of America now. Poverty...
The police. How come they are never there where the crime is? Did you ever hear this one... "I am sorry I can't do anything, I didn't witness it." meanwhile you have several first hand witnesses standing around willing to give their account. Or they show up at the crime scene with a fresh coffee because it may take a while to do the report of a crime that already took place. We don't really need town police. Let the County Sheriff hire a couple more dep's and save a bundle here. Pay less tax. Let us protect ourselves.
Please believe in the real U.S. and give us our freedom back from the slavery of taxes .
How many jobs
is the protest in Wisconsin killing when parents have to find babysitters for their children?
How many jobs were lost in the moratorium?
Job loss is a great eye catcher, but hardly truth. Because if anyone cared about job loss, they'd actually care.
People demand freedom of speech to make up for the freedom of thought which they avoid. - Soren Aabye Kierkegaard (1813-1855)
which jobs?
Certain jobs NEED to be lost. We always hear complaints about how we lose manufacturing jobs and the like in this country - well, bureaucractic jobs are by nature unproductive. IRS jobs are unproductive. Tax accountant jobs are unproductive. I'd like to see all those jobs lost. Then the private workplace would employ these individuals in productive jobs, creating goods and delivering services. It's silly to presume that a job lost is always a bad thing. Some jobs ought to be lost. For that matter, some jobs just become obsolete. How are the key-punch operaters doing nowadays?
goods and services?
What goods would those tax accountants produce? The US has been losing manufacturing jobs for decades, so there isn't really much room for more workers.
As for services, they are already in a service position... so again, all you would end up doing is pulling jobs from the market while not creating new ones.
Job loss is not a problem when new jobs can be created for those now unemployed. If no new jobs are created then all you have done is increase the drain on our economy.
It is a false equivalence to equate technological advancement (which can produce new jobs) with eliminating an industry (which is a purely destructive act from an employment standpoint).
not when...
Not when the industry produces nothing of value. Any portion of the GDP which is used for non-productive services is a drain on the economy. Tax accountants would have to find another line of work. Maybe start their own businesses. That's how economies advance.
drain
How exactly are tax accountants producing nothing of value? Companies have to deal with taxes (much morecomplicated then for the average American) and so tax accountants enable companies to pay what they need to.
And those tax accountants don't just take their money home and burn it, they spend it on goods/services like the rest of us... and last time I checked that was good for the economy.
Start their own business doing what exactly? That may be how economies change over time... but one cannot forget that such changes are destructive to those caught up in them.
Yes, IRS jobs
are unproductive. How many IRS agents were hired this season? A lot...
Ha, yeah, key-punch no more.
People demand freedom of speech to make up for the freedom of thought which they avoid. - Soren Aabye Kierkegaard (1813-1855)