Increasing Employment and GDP
If the Republicans in Congress had passed President Obama’s American Jobs Act the following would have occurred:
- Goldman Sachs economists estimated that the AJA would increase GDP by 1.5 percent, before any multiplier effects.
- Thomas Lam, of the economic advisory firm OSK-DMG, estimated that the bill would boost GDP by 1.8 percent.
- Macroeconomic Advisers estimated that the boost would be 1.3 percent.
- Mark Zandi, chief economist of Moody’s Economy, put the boost at 2 percent of GDP.
- The Economic Policy Institute estimated that the new initiatives in the AJA would increase GDP by 1.9 percent, while policy extensions it included would increase GDP by another 1.4 percent.
- The Congressional Budget Office scored the bill as a net deficit reducer over a ten year budget window.
- Since none of these organizations are particularly Democratic leaning partisans, it’s hard to imagine they would “fudge” the numbers.
So who stopped the economy from growing more rapidly? Who stepped on the breaks? It’s only a short logical leap, given what Republicans have been saying for the last four years, to determine who hit the breaks and why this bill failed to pass.
Come November, every voter should remember – or be reminded of – these statistics, especially if they don’t have a job or are underemployed or own a small business. They should be reminded that there was a plan, presented by President Obama, that the GOP opposed purely to score political points, rather than choosing to save the economy – and create jobs and economic growth.