Macroeconomic Advisers LLC says President Barack Obama’s American Jobs Act “would give a significant boost to GDP and employment.”
The various tax cuts aimed at raising workers’ after-tax income and encouraging hiring and investing, combined with the spending increases aimed at maintaining state & local employment and funding infrastructure modernization, would:
- Boost the level of GDP by 1.3% by the end of 2012, and by 0.2% by the end of 2013.
- Raise nonfarm establishment employment by 1.3 million by the end of 2012 and 0.8 million by the end of 2013, relative to the baseline.
The program works directly to raise employment through tax incentives and support to state & local governments for increasing hiring; it works indirectly through the positive boost to aggregate demand (and hence hiring) stimulated by the direct spending and the increase in household income resulting from lower employee payroll taxes and increased employment.
So this morning I read this from Steve Benen:
I’ve been pretty impressed over the last week with the White House’s jobs plan, the campaign to generate support for the plan, and the general reluctance to make preemptive concessions. But barring an enormous outpouring of public support, I still don’t see the path between introduction and success.
And then this afternoon I read this from Matthew Yglesias:
Justice and equality doesn’t just happen because it’s nice, people need to make it happen. If it’s not happening, then its advocates are failing. … Reading and talking to like-minded people about how powerful people are failing can seem like action, but it really isn’t. …
Make sure to call/write to your member of Congress and senators. Even if their vote is entirely predictable, they still pay attention to what they’re hearing from constituents and the overall volume of feedback still matters. … You should be doing this regularly. If a major legislative proposal is dropped, let your elected officials know how you feel about it. Both positive and negative reinforcement matter.
Excellent points.
And hey, did I happen to mention that Macroeconomic Advisers crunched the numbers on President Obama’s American Jobs Act?
They did. Here’s what the math says. That’s math — M-A-T-H — not spin, punditry or talking points. This is what will happen if the Jobs Act is signed into law. This is what will not happen if the Jobs Act is not signed into law.
The various tax cuts aimed at raising workers’ after-tax income and encouraging hiring and investing, combined with the spending increases aimed at maintaining state & local employment and funding infrastructure modernization, would:
Boost the level of GDP by 1.3% by the end of 2012, and by 0.2% by the end of 2013.
Raise nonfarm establishment employment by 1.3 million by the end of 2012 and 0.8 million by the end of 2013, relative to the baseline.
So if you regard a growing economy and higher employment as good things, you might want to follow Matt’s advice and call your representatives in Congress.
You can find their phone numbers at Contacting the Congress: A Citizen’s Congressional Directory.
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