In reality, there’s remarkable consensus among mainstream economists, including those from the left and right, on most major macroeconomic issues. 92 percent of top-ranked economists say the ‘stimulus’ lowered unemployment.
Here are 6 areas that economists agree on….
- The Recovery Act (‘Stimulus’) was a success, part of a historic turnaround.
- The American Jobs Act should be passed at once.
- The economy needs MORE federal spending, not LESS
- Repairing and upgrading our infrastructure is job 1
- Lower tax rates on top incomes make things worse, not better, as in:
- The income gap, which fueled this crisis, is a big drag on growth.
Every Republican who disses the Stimulus Funding is simply dead wrong. Every Republican who does not even have an idea of what they are talking about… Job growth went from -800,000 per month under Bush to an average net gain of 160,000. That’s a turnaround of nearly 1 million jobs per month! A historic achievement that gives tangible meaning to change we can believe in. 92% of economists or 100% of those NOT on Romney’s payroll, concur.
Moody’s Analytics estimated the American Jobs Act would create 1.9 million jobs and add 2% to gross domestic product.
The Economic Policy Institute estimated it would create 2.6 million jobs and protect an addition 1.6 million existing jobs.
Macroeconomic Advisers predicted it would create 2.1 million jobs and boost GDP by 1.5 percent.
Goldman Sachs also predicted it would add 1.5% to GDP.
Policy advisers to Presidents Reagan, Bush and Clinton, Nobel prize winners, IMF and World Bank analysts, private forecasters, Goldman Sachs, Forbes…The Consensus is clear: our economy needs MORE Federal spending, not LESS. The world’s top economists warn austerity policies are pushing the world economy toward disaster.
The American Society of Civil Engineers is calling for a 5 year, $2.2 trillion dollar program to repair, rebuild and update our infrastructure, beginning immediately. That’s $400 billion a year, every $1 billion dollars of which will create 23,000 jobs. That translates into 9.2 million jobs a year. Romney wants to spend the same amount on our military. Our military is already larger than the twenty next armies combined….
Tax cuts on top incomes likewise produce no return. A study by the Congressional Research Service reviewed tax, investment and growth data beginning in 1945, the first year for which they’re available. Their analysis showed tax reductions on top incomes do not increase investment or growth. In fact, growth has consistently been more robust during periods when top tax rates were higher.
Instead of making the economic pie larger, the CRS found, reductions on top tax rates change how the pie is sliced, concentrating income at the top. (ie the kavipsian Economic Theory) Romney’s approach leads us on the road to Greece.
The effect of income inequality on economic growth is negative. But inequality, especially of the U.S. variety, is bad for growth. The country grew faster in the decades after World War II — when it was also growing together, with all groups seeing increases in income. But those at the bottom were growing the most. those in the middle, ordinary Americans who work for a living, let alone those at the bottom, are getting a smaller slice of a pie that is smaller than if we had continued growing as we did postwar. The net result is disheartening: Most Americans are worse off today than they were 15 years ago.” Income inequality in America peaked in 1929 and in 2007 – just before massive economic contractions. It is about to again and will, if Romney’s 5 Trillion tax cut is allowed to progress unimpeded…..