Monday, July 29, 2013

House Republicans Are on the Hook for Killing 1.6 Million Jobs By: Sarah Jones

Want jobs? Get Congress to end sequestration.
Representative Chris Van Hollen (D-MD), the ranking Democrat on the House Budget Committee, requested an analysis of the costs of the sequester cuts – something I’ve been asking around for since they took place to no avail.
Guess what? The nonpartisan Congressional Budget Office(CBO) reiterated their projections about the sequester slowing growth, and estimated that the Republican inflicted spending cuts would cost up to 1.6 million jobs if left in place through fiscal 2014.
The CBO determined that canceling sequester cuts would create between 300,000 (.3 million) to 1.6 million new jobs. Gee, we’ll take it! Sounds pretty good to us.
Their break down:
Those figures represent CBO’s central estimates, which correspond to the assumption that key parameters of economic behavior (in particular, the extent to which higher federal spending boosts aggregate demand in the short term) equal the midpoints of the ranges used by CBO. The full ranges CBO uses for those parameters suggest that, in the third quarter of calendar year 2014, real GDP could be between 0.2 percent and 1.2 percent higher, and employment 0.3 million to 1.6 million higher, under the proposal than under current law. Because those estimates indicate the effects of a prospective change in law, they do not encompass the full impact of the sequestration that has already occurred.
The sequester was always a Republican dream, and Republican Budget God Paul Ryan (R-WI) has been championing it since 2004.
On August 1, 2011, Paul Ryan went on Fox News to crow that he finally got his way when sequestration was put into place via the 2011 congressional debt ceiling deal. Yes, that’s right. We got there because House Republicans were holding the economy hostage over raising the debt ceiling because they didn’t want to pay for the things they’d already bought.

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