Debt ceiling deal to cost 1.8 million jobs, and yesterday the President addressed a key concern

[ProSense]

REPORT: Debt Ceiling Deal Will Cost 1.8 Million Jobs In 2012

The Economic Policy Institute, a top nonpartisan think tank, estimates that the deal struck this weekend to raise the nation’s debt limit will end up costing the economy 1.8 million jobs by 2012. Today the Senate is expected to approve the package passed yesterday by the House and send it to President Obama. But while the unemployment rate remains above 9 percent, the deal does nothing to address chronic joblessness.

The agreement would reduce spending by at least $1 trillion over 10 years, but even the near-term cuts could shrink already sluggish GDP growth by 0.3% in 2012. According to EPI, the plan “not only erodes funding for public investments and safety-net spending, but also misses an important opportunity to address the lack of jobs.” In particular, the immediate spending cuts and the “failure to continue two key supports to the economy (the payroll tax holiday and emergency unemployment benefits for the long term unemployed) could lead to roughly 1.8 million fewer jobs in 2012.”



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That report went viral.

President Obama, Weekly Address:

The payroll tax cut that put $1,000 back in the average family’s pocket this year? Let’s extend it. Construction workers who’ve been jobless since the housing boom went bust? Let’s put them back to work rebuilding America. Let’s cut red tape in the patent process so entrepreneurs can get good ideas to market more quickly. Let’s finish trade deals so we can sell more American-made goods around the world. Let’s connect the hundreds of thousands of brave Americans coming home from Iraq and Afghanistan to businesses that need their incredible skills and talents.

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In his weekly address, the President also mentioned putting Veterans back to work: Obama unveils civilian jobs program for out-of-work veterans

The President also mentioned "rebuilding America," which the he has repeated pushed for via the creation of an infrastructure bank.

There is a bill in Congress, and members are pushing for it.

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Meanwhile, Democrats like U.S. Senator John Kerry and U.S. Representative Peter DeFazio are hoping to beef up Washington's investment in infrastructure projects.

"We know that every $1 billion invested in just transportation infrastructure, creates or sustains over 34,000 jobs and produces $6.2 billion in economic activity," DeFazio wrote President Barack Obama in June.

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Kerry's site has information on the BUILD ACT

[ProSense]

1. No comment? n/t

[sakabatou]

2. This is part of what we need: Eisenhower-type job creation

[mindem]

3. Boner got 98% of what he wanted.

I guess that proves that repuke economic policies cost jobs.

[Warren Stupidity]

4. The president has signed on to an austerity program that will

continue the downward spiral we are on, likely amplify the size and length of the next recession, but will of course 'restore confidence', i.e. keep interest rates low, so that the finance industry oligarchs can continue to accumulate wealth.

This congress will not extend unemployment compensation. They will of course continue the FICA tax cuts. Those two items are small potatoes compared to the rest of the austerity program.

Oh and free trade? Seriously?

[izquierdista]

8. How free trade creates jobs

(1) Free trade deal with China allows them to export their quality drywall to the U.S. leading to
(2) Lots and lots of new houses being built which makes for lots of drywall installer jobs leading to
(3) Lots of people moving into those houses which makes for lots of moving company jobs and also
(4) People inhaling the fumes of said quality drywall which makes for lots of jobs at hospitals and respiratory clinics leading people to
(5) Hire home inspectors to figure out :wtf: is with the rotten egg smell and the corroded pipes leading to
(6) Jobs ripping out said quality Chinese drywall and replacing it with American drywall leading to
(7) More jobs in American factories that produce drywall.

See how the multiplier effect works!

[Warren Stupidity]

9. I hadn't considered that angle.

[ProSense]

11. Interesting! n/t

[RC]

5. The payroll tax cut that put $1,000 back in the average family’s pocket this year? Let’s extend it.

Obama can't be serous. This sounds like Michele talking.
The government is suffering from a serous revenue short fall and needs to RAISE taxes.

[ProSense]

6. Hmmm?

"Obama can't be serous. This sounds like Michele talking."

EPI (see the OP):

In particular, the immediate spending cuts and the “failure to continue two key supports to the economy (the payroll tax holiday and emergency unemployment benefits for the long term unemployed) could lead to roughly 1.8 million fewer jobs in 2012.”

Does the EPI sound like "Michele"?

FYI, Michele and Republicans are advocating the opposite, claiming that low- and middle-income Americans don't pay their fair share in taxes.

[Harmony Blue]

7. The Payroll tax

is a trojan horse to starve important government programs. Big mistake for the Obama administration to want to continue the tax holiday.

[ProSense]

10. Nonsense. n/t

[Igel]

12. To expand on ProSense's comment...

The partial payroll tax holiday starves nothing. It just increases the deficit and debt. (Okay, I stand corrected: The partial payroll tax holiday starves the future.)

The difference between what you'd normally pay for FICA and what you pay under the "rebate" is made up by funds from general revenues.

It's a disguised rebate program that's supposed to affect certain groups. Instead of sending you a check for $1000 (or whatever), you get it over the course of the year in your paycheck. A regular income tax credit would be considered regressive since upwards of 40% already pay no net Federal income tax; it wouldn't help most in the bottom half of family income. Refundable income tax credits are always difficult to get passed.