Obama Plan Could Add 2% to U.S. GDP in 2012

[ShockediSay]

Source: Bloomberg News

The U.S. economy would get a boost of up to 2 percent under President Barack Obama’s $447 billion jobs plan, say economists at Goldman Sachs Group Inc., Moody’s Analytics Inc. and JPMorgan Chase & Co.

“The U.S. is on the cusp of a recession,” said Mark Zandi, chief economist at Moody’s Analytics in West Chester, Pennsylvania. “The plan would go a long way toward stabilizing confidence, forestalling another recession and jump-starting a self-sustaining economic expansion.”

The proposal, which would raise infrastructure spending and cut in half payroll taxes paid by workers and small businesses, would add 2 percent to next year’s GDP, create 1.9 million jobs and lower the unemployment rate by one percentage point compared with current policy, Zandi said.

Read more: http://www.bloomberg.com/news/2011-09-09/obama-job-plan-would-boost-u-s-gdp-by-up-to-2-next-year-economists-say.html

---

Might be a bit early to surrender to the Right Wing Propaganda Machine methinks

[Autumn]

1. Goldman Sachs Group Inc., Moody’s Analytics Inc. and

JPMorgan Chase & Co. Okay













:rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl: :rofl:

[Historic NY]

5. Then S&P will come along and downgrade it.

[nilram]

13. damn socialistas.

[Deep13]

2. It may boost the economy and still not create any domestic employment. nt

[Historic NY]

7. Maybe not great but some dent....to bring the pendulum back

The Obama plan “is a collection of stuff that collectively could probably make a significant dent in unemployment, not huge, but it would make a noticeable difference in the economy,” Nobel Prize-winning economist Paul Krugman said in a Bloomberg News interview in Yaroslavl, central Russia.

[Deep13]

10. I don't think the pendulum has much to do with it.

I know the old men is that the economy is cyclical, but I don't buy it. The problem is that too much of the nation's resources are being usurped by the parasitic upper class while the rest of us keep getting poorer.

[ShockediSay]

20. +

[ShockediSay]

21. the parasitic upper class, the Top Two %, created bubbles like housing, wall st,

the economy, big banking, debt individual and national, and, oh yes, the Great Recession.

[Deep13]

25. Fucking auto correct. "Meme," not "men."

[No Elephants]

32. No country for old memes.

[InkAddict]

27. and older. n/t

[No Elephants]

31. +1 I should change my sig. It's more like 98% or 99% vs.2% or 1%.

Sadly, most of the 99% or 98% (a) has been asleep during the growth of the plutonomy and remains so as to its causes; and (b) votes against its own best interests.

And I don't mean only the Tea Party.

[frazzled]

11. It says "and create 1.9 million jobs"

You forgot to read OP and the article

[Deep13]

24. I didn't forget anything. You are being presumptuous.

I read it and think it's bullshit. The WH can predict whatever it wants, the proof is in the pudding. Do you believe everything you read?

[No Elephants]

33. Who says a WH press release about a WH plan is solid as a rock?

[DJ13]

3. I really dont see how considering over half is just extensions of existing tax cuts

[Igel]

28. Because ...

You use a model to predict what growth will be with the cuts reversed. You come up with a lot of error in your prediction.

Then you use a model to predict what the growth would be with the Obama jobs plans. That, too, has a lot of error.

You take that and somehow use some sort of model to predict how that turns into new jobs. Or retained old jobs. Or increased hours for jobs that had previously seen decreased hours.

In the end, you wind up with a lot of error in that figure.

So it's probably something like 200,000 jobs, give or take 1.7 million.

Hence "could". Not "probably," not "very likely," not even "more likely than not" or "there's a decent chance." Just, "it's possible."

Once you start counting possible results as urgently meaningful you know that you've gone around the bend. I once saw the calculation for the likelihood of all the air molecules and atoms in a room suddenly retreating to one corner, suffocating everybody in the room. It's very, very improbable. Headline: "With Obama's jobs plan, all the air in your office could suddenly move into the corner." Rather less likely than the jobs/GDP prediction. But still "could" happen.

[elleng]

4. Might be.

Which DUers would agree with you, Shocked.
:hi:

[MilesColtrane]

6. "Obama Plan Could Add 2% to U.S. GDP in 2012"

This is why House Republicans will neuter it or block it completely.

[Pirate Smile]

8. Why did the NYT post a crap story yesterday essentially promoting the anti-jobs bill garbage? This i

is in Bloomberg. Hopefully, it gets a lot of coverage - and the President & Dems start to flog it so it sets into the Public consciousness.

[TomCADem]

16. The Story Hiding In Plain Sight Is That The 112th Congress Is The Worst Ever...

You have Mitch McConnell in the Senate and the entire Tea Party contingent in the House all deliberately trying to harm the U.S. economy for political gain, and doing absolutely nothing to try to improve the lives of everyday Americans. Heck, tbey proudly skip a joint session on jobs based on concerns about deficit, but then refuse to raise taxes on the rich.

[cstanleytech]

17. Exactly and rather than attack them some people (even some here) are blaming

Obama for the problems when the majority of the current issues lays at the feet of the congress.

[ShockediSay]

23. Our recovery was growing stronger until this Congress, which shifted

to the neo fascist right wing on account of a flood of campaign contributions by Big Money Corporate Greed Billionaire Bosses

[ShockediSay]

22. +

[Tarheel_Dem]

9. K&R

[Name removed]

12. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Name removed]

14. Deleted message

Message removed by moderator. Click here to review the message board rules.

[ProSense]

15. More analyses

American Jobs Act: A Significant Boost to GDP and Employment

Obama’s Plan: Robust and Ambitious

How Would the President’s Jobs Proposal Affect the Economy?

[Yo_Mama]

18. What reason is there to believe this?

The bulk of the money spent here is about the same thing we did this year. It hardly fueled growth this year, did it? We got a near-disaster out of it, didn't we?

You can't fix a problem of the size and type we now have by giving huge tax breaks to those who are doing well and almost nothing to those who are flat on the floor. The essence of Keynesian theory about stimulus is to funnel the money so that it fills up gaps in the economy.

We need to think about aid for the unemployed and aid for the partially/low earning employed, not giving thousands of dollars a year in tax breaks to people who are doing well. It won't change the spending patterns of those people, you see? And if those people who don't have money don't spend, the business owners getting the new tax breaks won't hire, and that's just how the world works.

We're on the stupid train and it appears that we can't get off.

[Igel]

29. Flip it around.

It's a sort of veiled threat.

"Do this or the economy will contract by 2%." After all, the predictions include having these cuts expire, right?

Things are sucky and will get suckier, but if we do this they'll stay about as sucky as they are now.

*That* we're supposed to think of as a plus?

[Yo_Mama]

30. Well, it won't stay about as sucky as it is now

The economy is going downhill and the world economy is going downhill.

We really do need meaningful stimulus, but what is being proposed won't work. Because it didn't work. We already tried this one.

Now if we tried a real Keynesian program it would help, although all bets are off. But this plan stinks.

Mind you, it probably will be good for the class that these types represent, but only temporarily. In the long run, their incomes too depend on the health of the Main Street economy. But they have consistently been to out of touch to know this after years of bubbling ever onwards and upwards. That reached its natural conclusion, but a lot of WS talking heads haven't figured it out yet.

This is what I do for a living, and shoddiness of the analysis is something I deal with all the time.

[alp227]

19. according to Boehner, Cantor, McConnell, Ryan, etc this is TOO MUCH!!!

that can't happen, because Obama deserves nothing but one and only one term! and Rick Perry can't get into the White House and push his hyper-libertarian/fundamentalist/corporatist agenda on the people! :sarcasm:

[ShockediSay]

26. Yet more analyses, generally favorable

http://finance.yahoo.com/news/Economists-show-support-for-apf-2760144223.html?x=0&sec=topStories&pos=8&asset=&ccode=

[No Elephants]

34. What part of COULD escapes people? May as well say "Anything is possible. In theory."