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Monday, August 30, 2010

The Gavel: If you think things are bad now . . .

August 27th, 2010 by Karina
Our nation has been facing the worst economic crisis since the Great Depression because of the failed economic policies of the Bush-Republican years which led to 8 million American jobs lost, the national debt nearly doubling, $17.5 trillion in household wealth lost, and the worst private sector jobs record of any administration in 75 years.

And the GOP promises to return to the “exact same agenda” if they gain control of Congress.

Newsweek this morning paints a grim portrait of what the American economy would look like if Republicans had been in charge of responding to the recession that their policies created: fewer American jobs and larger deficits.

These conclusions are consistent with other analyses including reports from the nonpartisan Congressional Budget Office (CBO). the CBO found the Recovery Act is responsible for boosting GDP by as much as 4.5 percent in the second quarter of 2010 and adding as many as 3.3 million American jobs.

Economist Mark Zandi, chief economist at Moody’s Analytics and former adviser to Sen. John McCain in 2008, and Alan Blinder, Princeton Professor and former vice chairman of the Fed, said the government’s total response to the economic crisis, including the Recovery Act:

probably averted what could have been called Great Depression 2.0…

without the government’s response, GDP in 2010 would be about 11.5% lower, payroll employment would be less by some 8½ million jobs, and the nation would now be experiencing deflation.

From Newsweek’s blog the Gaggle:

…There’s only one problem with [House Republican Leader John] Boehner’s message: so far, the things that Republicans have said they want to do won’t actually boost employment or reduce deficits. In fact, much the opposite… if they were now given carte blanche to enact the proposals they want to enact—the projected 2010-2020 deficits would be larger than they are under Obama, and fewer people would probably be employed…


…Even if we assume that the Republicans would’ve spent $0 to stimulate the economy in the wake of the largest economic collapse since the Great Depression—an unlikely scenario, given the very real risks of inaction—their proposed policies would still produce a deficit $371 billion larger than President Obama’s…
On jobs, it’s a similar story


History isn’t on the GOP’s side, either. If keeping the top marginal tax rate at 35 percent–the rate under Bush, and the rate that Republicans are fighting to preserve—spurs so much hiring, why didn’t America experience any job growth at all during Bush’s time in office?

And if a top marginal tax rate of 39.6 percent—the rate under Bill Clinton, and the rate that Democrats are fighting to restore—is such a job-killer, why did payrolls grow by 20 percent during the 1990s?…

But there’s simply no evidence, either in the history books or the latest projections, to suggest that extending all of the Bush tax cuts would provide an employment boost large enough to offset the number of jobs that would’ve been lost if the GOP had succeeded in blocking the stimulus—let alone lasting enough to justify adding another $700 billion to the deficit…

We can't go back to the failed policies of the Bush-Republican years. The American people can’t afford it

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