Independent economist: Republican jobs plan won't create jobs,but it might destroy them

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Independent economist: Republican jobs plan won't create jobs ... but it might destroy them
by Jed Lewison
http://www.dailykos.com/story/2011/10/14/1026397/-Independent-economist:-Republican-jobs-plan-wont-create-jobs--but-it-might-destroy-them?via=blog_1

Greg Sargent talks with Moody's Analytics economist Gus Faucher about the GOP's latest jobs "plan":
http://www.washingtonpost.com/blogs/plum-line/post/economist-senate-gop-jobs-plan-wouldnt-help-economy-in-short-term-and-could-even-hurt/2011/10/14/gIQAtVuBkL_blog.html


Moody’s recently estimated that Obama’s jobs plan, if passed, would add two percentage points to economic growth next year, add 1.9 million jobs, and cut unemployment by a full percentage point. By contrast, the Senate GOP plan wouldn’t help the economy in the short term, Faucher said.

“Should we look at regulations and make sure they make sense from a cost benefit standpoint? Certainly. Should we reduce the budget deficit over the long run? Certainly,” Faucher said. “But in the short term, demand is weak, businesses aren’t hiring, and consumers aren’t spending. That’s the cause of the current weakness — and Republican Senate proposals aren’t going to address that in the short term.”

“In fact, they could be harmful in the short run, if the focus is on cutting spending,” Faucher continued. “They don’t say explicitly when they would cut spending, but the Republican focus is on cutting spending sooner and later.”

So at best the Republican proposals won't create any jobs. At worst (if their proposals were to take effect too quickly) they would actually destroy jobs. That's a perfect encapsulation of just how absurd and pathetic the Republican approach to job creation has become. What we need is for Republicans to step forward and support measures which will increase demand. Instead, we're just hoping they don't inflict any further damage.