In an amazing article, the AP quotes Mark Zandi chief economist at Moody's Analytics giving his projections of employment if the Obama Jobs Bill were passed as proposed by the end of this year. Zandi ran the numbers through his econometric models and concluded that Obama's program would result in a 1% drop in unemployment and a 2% increase in GDP in 2012. That is the part that consistently gets publicized. Zandi also says, however, that after Obama announced his tax plan which would pay for the Jobs Bill, he went back and ran the numbers again. The whole Obama plan results in a substantial drag on the economy after 2012 with the result that by 2015, the economy will be in exactly the same place as if there had been no bill. After that, however, growth in the economy would be lowered and unemployment would be higher. In addition, these projections do not apply if there is an overall recession or if there are economic disruptions outside the USA that affect the American economy. In other words, these projections simply apply to a situation that is unlikely to occur.
Boiling down the Zandi remarks, one finds an amazing conclusion: the OBama jobs plan is a long term plan to both reduce growth and lower employment all so that there can be a slight boost to the economy just prior to the re-election campaign of the president. Obama is trying to trade away a bright future for the USA in exchange for keeping his job. Do we really want a president who would do such a thing?
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