Sunday, October 16, 2011

Remember: Senate republicans killed bill that could have raised economic growth by 1.25 percentage points and have created 1.3 million jobs in 2012. -


No Jobs Bill, and No Ideas

It was all predicted, but the unanimous decision by Senate Republicans on Tuesday to filibuster and thus kill President Obama’s jobs bill was still a breathtaking act of economic vandalism. There are 14 million people out of work, wages are falling, poverty is rising, and a second recession may be blowing in, but not a single Republican would even allow debate on a sound plan to cut middle-class taxes and increase public-works spending.
The bill the Republicans shot down is not a panacea, but independent economists say it would have a significant and swift effect on the current stagnation. Macroeconomic Advisers, whose forecasts are often used by the Federal Reserve, said it could raise economic growth by 1.25 percentage points and create 1.3 million jobs in 2012. Moody’s Analytics estimated new growth at 2 percentage points and 1.9 million jobs. Those economists say that Republican ideas for increasing growth would have no measurable effects in the next year.
The Republicans offer no actual economic plans, only tired slogans about cutting regulations and spending, and ending health care reform. The party seems content to run out the clock on Mr. Obama’s term while doing very little. On Tuesday, Mr. Obama’s campaign manager, Jim Messina, accused Republicans of trying to “suffocate the economy” in hopes that the pain would work to their political advantage. They are doing little to refute that charge.
Their lack of serious ideas was on full display in both the Senate and the presidential debate on Tuesday night in New Hampshire. The debate was ostensibly about the economy, but when the freshest and most-talked-about idea is Herman Cain’s ridiculous “9-9-9” tax plan, it is clear that the economy they were debating is not the one Americans are forced to live in. Mr. Cain — whose rise in the polls says everything you need to know about the amateur-hour decline of his party — wants to replace all federal taxes with a 9 percent levy on corporate income, personal income and sales. As Bruce Bartlett, an economist who has worked in Republican administrations, recently wrote in The Times, it is a formula designed to cut taxes for the rich and increase them for the poor, raising the deficit and doing nothing for growth.
The other candidates were no less vacuous. Mitt Romney offered an ash heap of used ideas, saying he would push a balanced-budget amendment, cut back on regulations, and go chest to chest with China on trade. Rick Perry, when he could be stirred to speak, vowed to somehow put 1.2 million people to work in the energy industry, as if the whole country were Texas and drills could pop up on every block.
Republican candidates fear the Tea Party too much to acknowledge that economists are solidly behind government intervention to awaken growth. The jobs bill rejected by Republican leaders will now be reintroduced piece by piece, and Republicans are not likely to go along with much more than an extension of the payroll tax cut (which is opposed by Mr. Romney). But at least the record is increasingly clear who is advocating real ideas and who is selling an empty vessel.

No Jobs Bill, and No Ideas -

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