Deficit commission plan would kill 4 million jobs, analysis finds

[RamboLiberal]

The preliminary deficit reduction plan recently released by the co-chairmen of the National Commission on Fiscal Responsibility would kill four million jobs over the next three years, according to a recently published analysis by the Economic Policy Institute (EPI).

"Using the rule of thumb that a 1% increase in GDP increases payroll employment by 1 million jobs, we estimate that Co-Chairs’ Proposal would thus reduce payroll employment by roughly 723,000 jobs in 2012, 1.4 million jobs in 2013, and 1.9 million jobs in 2014," economists Josh Bivens and Andrew Fieldhouse said in their report, "Fiscal commissioners’ proposal would cost millions of jobs."

Bivens and Fieldhouse said in their report that the proposal drafted by former Sen. Alan Simpson (R-Wy.) and Erskine Bowles, President Bill Clinton’s former chief of staff, plays "lip service" to future economic conditions in America.

The EPI report said that because Simpson-Bowles proposal assumes the unemployment rate will remain roughly at the current level, or perhaps higher, austerity policies and slow economic growth would create "more job losses and less deficit reduction."

http://www.rawstory.com/rs/2010/11/deficit-commission-plan-kill-4-million-jobs-analysis-finds/

[OHdem10]

1. I am fast reaching the conclusion they are hell bent on trying to

reform entitlements (SS Medicare etc) and decided
to use this crisis as an excuse.

In every other recession the GOP have always said
get the growth going and the deficit will begin to
take care of itself. Recommend the spending cuts
be made at that time. It is true that once you
have most people working and paying taxes, more
money comes into the government and you can better
guage exactly what and where to cut.

Making cuts across the board means job layoffs.
This makes no sense unless we really are now
a Banana Republic--things really are not going to
get that much better so take the meat axe and get
it over with.

[ezmerelda39]

2. Obviously

the Deficit Commanders are hell bent on having their cake and eating it too. It is amazing how we can 'afford' to build billion dollar embassies but do not have funds for basic necessities at home. When the jobs are all gone and the unemployment insurance money has been denied for the last time and the houses are all repossessed and the Social Security and Medicare have been handed over to Wall Street what will they take away then? When this country has been squeezed completely dry will people finally 'get it?'

[whistler162]

3. Actually it will kill 20 gazillion/trillion people

and all the unicorns!