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Thread: Obama Plan Would Boost GDP, Economists Say(edited)

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    Obama Plan Would Boost GDP, Economists Say(edited)

    The cost of inaction is much greater than the cost of action.

    Obama Plan Would Boost GDP, Economists Say - Bloomberg

    President Barack Obama’s $447 billion jobs plan would boost U.S. gross domestic product by as much as 2 percent in 2012, say economists at Goldman Sachs Group Inc., Moody’s Analytics Inc. and JPMorgan Chase & Co.
    “The plan would go a long way toward stabilizing confidence, forestalling another recession and jump-starting a self-sustaining economic expansion,” said Mark Zandi, chief economist at Moody’s Analytics in West Chester, Pennsylvania. “The U.S. is on the cusp of a recession” without action.
    Obama’s proposal, which would increase infrastructure spending and cut in half payroll taxes paid by workers and small business owners, would raise next year’s gross domestic product by 2 percentage points, add 1.9 million jobs and cut the unemployment rate by one percentage point, Zandi said.
    Putting Americans back to work is the focal point of the plan. Unemployment has hovered at about 9 percent or more for two years, damping consumer confidence and spending. Payrolls unexpectedly stalled in August, a Labor Department report showed on Sept. 2.
    Tax cuts account for more than half the dollar value of the plan, which includes a $105 billion in infrastructure spending for school modernization, transportation projects and rehabilitation of vacant properties. The proposal has $35 billion in direct aid to state and local governments to stem layoffs of educators and emergency personnel, according to a White House fact sheet.
    Government spending and tax changes would add 0.1 percentage points to growth in 2012 under the plan, instead of a contraction of 1.7 percentage points under current law, JPMorgan chief U.S. economist Michael Feroli said.
    So if the option is to simply cut services then wait and see, we're in for a long cold recession, but if we act it could improve things across the board.
    Last edited by Redress; 09-09-11 at 07:37 PM. Reason: To Comply with BN guidelines-Title changed.
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    Re: Obama's Plan is the Right Way to Go

    we have been discussing this in another thread and I just want to get my stance on this clear - I would hope that Congress would pass the entire Obama plan as he described it last night. The nation needs it. However, I fear that the GOP will only extract from it the planks that Obama included as part of the compromise with them top get their support and will dump everything else that Obama and the Dems want. They will then claim that they did give the President some of what he requested and thus did indeed compromise. And Obama will be outmaneuvered yet again by the Republicans.
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    Re: Obama's Plan is the Right Way to Go

    There are problems with it; namely that it might not be big enough, and that it draws money from underfunded programs. However, it's a better plan than doing nothing or deregulating again and again and hoping that corporations will start hiring quickly enough on their own.

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    Re: Obama's Plan is the Right Way to Go

    If it raises the GDP, it's as best a temporary thing with drags on the economy to follow. Indeed cutting what we pay in to S.S. will perhaps allow people to spend a little more. But then S.S. goes even further in debt which then has to be made up somehow.

    Bernanke notes that the drag is high energy prices (caused by his inflationary QE programs) and debt. (Even a blind squirrel finds an occasional acorn). Nothing here addresses either of those problems.

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    Re: Obama's Plan is the Right Way to Go

    printing money is definitely not the way out of this. i'm not a fan of Bernanke's QE.

    energy is the lifeblood of the economy, and we definitely need a new domestic energy policy. it should be treated as a top national priority.

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    Re: Obama's Plan is the Right Way to Go

    BREAKING: Obama Plan Would Not Boost GDP, Other Economists Say
    "I do not claim that every incident in the history of empire can be explained in directly economic terms. Economic interests are filtered through a political process, policies are implemented by a complex state apparatus, and the whole system generates its own momentum."

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    Re: Obama's Plan is the Right Way to Go

    Who cares if it raises GDP? The first stimulus raised GDP to an astronomical amount of almost 6% growth and where did that get us? In fact, government spending is apart of GDP. If the government spends more, then it will automatically increase GDP even if it doesn't add any economic values.

    Additionally, we have been implementing these tax cuts for quite awhile now and at what results? The only potential positive spending I see is on infrastructure and transportation. As for school renovation, that is not the federal government's role. It is a town, city, and state role.
    Last edited by Antiderivative; 09-09-11 at 11:32 PM.

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    Re: Obama's Plan is the Right Way to Go

    I'm curious as to the reason why Obama and the democrats continue to use the pro-tax hike speeches of wealthy patrons such as Buffet and King. Obama said in his speech that Buffet is outraged that he doesn't pay more.

    It doesn't take a genius to realize Buffet could easily pay more out of his own pocket, by not claiming any deductions and by donating to Treasury Direct. Every wealthy person in the country who believes so strongly that tax hikes for the wealthy should increase are casting themselves as hypocrites. If they want to pay more, they can pay more. Period.

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    Re: Obama Plan Would Boost GDP, Economists Say(edited)

    Quote Originally Posted by Tettsuo View Post
    The cost of inaction is much greater than the cost of action.

    Obama Plan Would Boost GDP, Economists Say - Bloomberg



    So if the option is to simply cut services then wait and see, we're in for a long cold recession, but if we act it could improve things across the board.
    Does Mark Zandi, a proponent of Obama's first failed stimulus plan now speak for all economists?

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    Re: Obama's Plan is the Right Way to Go

    Quote Originally Posted by Khayembii Communique View Post
    BREAKING: Obama Plan Would Not Boost GDP, Other Economists Say
    I think you forgot to include the link.

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