Skip to comments.Obama's Jobs Plan Wouldn't Make Huge Dent in Jobless Rate, Economists Say
Posted on 09/24/2011 9:07:07 AM PDT by Son House
The projection of 1.9 million new jobs, a 1 percentage point drop in the unemployment rate and a 2 percentage point increase in the gross domestic product under Obama's plan came from Mark Zandi, chief economist of Moody's Analytics.
"I assumed that it would be paid for," Zandi said. "I didn't know when I did that simulation how the president proposed to pay for it."
Zandi said his job-creation figure only applies to 2012.
"Beginning in 2013, and certainly into 2014, the plan is a drag on the economy because the stimulus starts fading away," he said. "So by 2015, the economy is in the same place as now, as if there were no jobs package."
Also, Zandi said, his forecast does not leave any room for a new recession.
The Obama-Zandi target of 1.9 million new jobs next year, or 158,000 a month, is somewhat higher than private analyses that suggest the plan would create 100,000 to 150,000 jobs a month.
As long as the GDP grows at an annual rate beneath 2.5 percent, it cannot create enough jobs for new entrants into the workforce, let alone to re-employ those laid off during the downturn, said Martin Regalia, chief economist for the U.S. Chamber of Commerce, the nation's biggest business lobby.
The chamber estimates it will take 20 million jobs over the next decade to get the economy back to pre-recession levels. It has its own jobs plan, which includes increased trade, greater oil drilling, quicker road and bridge construction and temporary corporate tax breaks.
"If you want to go from 9.1 percent down to 5.5 or 6 percent unemployment, you're going to have to grow roughly at 4.5 percent (GDP) for three years," Regalia said. "I don't see that in the forecast."
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Yes, but it makes great Socialist “Get the masses mobilized” rhetoric!
Look at inflation relative to interest rates. This is getting serious folks!
Dems keep trying the same thing over and over - expecting different results. They’re nuts.
Well ... it's not supposed to.
It's supposed to increase our economic decline. And I consider it to be a well-crafted plan.
That depends on what you consider to be huge. Is an upward dent of increasing unemployment another 2% a huge dent? His original jobs plan for $1T, supposedly to keep it under 8%, had an upward dent of over 1%. He's getting good at this!
The only permanent private sector jobs this administration has been able to create in the last 2 1/2 years is bankruptcy paralegals. And we did not need 787 billion in wasted stimulus spending to do that.
I don't see it happening. America will be a very different place in ten years.
Of course not. All it has to do is cause a jump in the employment numbers long enough to get Obama reelected.
That it will result in more deficit spending that will only kick the can down the road a little further and won't solve any of our problems is beside the point, or so it would seem with this administration.
Obama’s so-called “jobs bill” is not a bill, let alone a jobs bill. It is just another crime upon the American public to be committed by stealing MORE of our money that nobody knows the real whereabouts. Where is the unspent money? Where is what the banks paid back?
Ready to be used to buy Obama election costs. Maybe sitting in some foreign bank account, already laundered, to pay to hide Obama after he is thrown out of the White House?
How many more lies are the STUPID portion of the electorate going to swallow?
Thier looting the nation plain and simple
The Obama-Zandi target of 1.9 million new jobs next year, or 158,000 a month, is somewhat higher than private analyses that suggest the plan would create 100,000 to 150,000 jobs a month.Nameless sources claim. Partisan spin doctoring ping.
So MANY Racists in this country...now it has even spread to the “Economists”??!!
ZandiIdiot...enough said. =.=
The economists are once again "unexpectedly" wrong. This plan should be as successful as the last - both boosting the unemployment rate and extending the period of unemployment.
It isn't supposed to. It is govt spending designed to keep the GDP numbers above 0 percent. Any spending that keeps "growth" and GDP above 0% FedGov can say that we are not in recession. It is all perception. You see the game is you have to have 2 consecutive quarters of negative GDP to be in an official recession. The Fed will not let that happen to "the one", even if it means the Govt printers union works overtime.
Paging John M. Keynes.....
Nothing Obama does is for the good of "the people," only for the good of himself, his cronies, and his owners. Look at his close associations in Chicago with Tony Rezco and all the "public housing" scams. Nothing's changed, except for expanding his circle of corruption to a national (and possibly international) scale.
IIRC, I seem to rmember that 225K-250K of jobs per month is needed to keep unemployment at the same rate as the previous month. This, cuz that is the number of new workers entering the workforce each month ...
AND, the only reason unemployment doesn't rise each month is from the offset created by workers maxing out their unemployment and dropping off the rolls. They ain't counted in the new figures ...
So, a figure below 225K-250K is not going to help out ...