Jobs and Economy

About that GOP "Jobs plan"

By now you have probably heard House Republicans try to tout their so-called “jobs plan” as they try and explain to voters what they have been doing for the last 18 months. (Hint: Not passing a comprehensive jobs plan.) Instead, House Republicans have wasted $50 million in taxpayer dollars in a fruitless attempt to repeal the health reform law, failed to take action on middle class tax relief and stalled critical legislation like the Farm Bill, postal reform legislation and the Violence Against Women Act—all of which passed the Senate with strong bipartisan majorities.

But about that “jobs plan.” As the Huffington Post reports today: Republican Jobs Bills Won't Actually Create Jobs, Say Economists

Highlights from the article include:

“…But there's a problem with their jobs bills: They don't create jobs. At least, they won't any time soon.”

“In interviews conducted by The Huffington Post with five economists, nearly all said the GOP jobs package would have no meaningful impact on job creation in the near term. Some dismissed the idea that it would do much in the long term, as well.”

“‘A lot of these things are laughable in terms of a jobs plan that would produce noticeable improvements across the country in the availability of employment in the next four or five years,’ said Gary Burtless, a senior economist at Brookings. ‘Even in the long run, if they have any effect all, it would be extremely marginal, relative to the jobs deficit we currently have.’”

“…At the heart of the GOP jobs package is a push for rolling back regulations -- and gutting environmental laws that regulate clean air and water -- to spur job growth. The House Republican Conference website makes the argument that deregulation will ‘remove onerous federal regulations that are redundant, harmful to small businesses, and impede private sector investment and job creation.’”

But economists told The Huffington Post that regulation has had a minimal impact on the unemployment rate. Their claim is backed by the Bureau of Labor Statistics, which shows that just under 16,000 jobs, or 0.4 percent, were lost because of ‘government regulations/intervention.’"

A few other winning comments from economists in the article:

Mark Zandi, Moody's Analytics:  “You can make specific changes that could affect a specific industry or a few companies, but it's not going to make a big difference in terms of the monthly job numbers. It takes some very significant changes across lots of different industries to really make a big difference.”

Carl Riccadonna, Deutsche Bank: “…It gives the impression that maybe some of this is special interest really pursuing these, not really taking a macro view but a very, very micro focus in what the impact would be."  For most of the bills in the package, “jobs are a second- or third-order effect, not the main priority.”