Obama’s economic plan vs. the GOP’s

I wonder if the general public understands this: President Obama’s proposed American Jobs Act has the potential to prevent a new economic recession in 2012.

Meanwhile, the Republican prescription for the economy – immediate government spending cuts and a tax hike on middle class Americans (a result of ending the payroll tax holiday), eroding jobless benefits, etc. – would almost certainly cause a new recession.

That, anyway, is the conclusion of a disparate group of economists surveyed by Bloomberg News to assess the plans.

Why would Republicans propose a course of action that almost any economist would say is bound to result in immediate economic contraction? It could be the sudden bout of fiscal conservatism that seems to temporarily grip the party whenever a Democrat holds the White House. Or it could be the knowledge that the American electorate is more likely to punish the president than Congress when the economy is suffering during an election year.

It would be nice to think that Republicans wouldn’t put their political fortunes ahead of the American economy, but the evidence is pretty convincing that’s exactly what they’re doing.

2 Responses to Obama’s economic plan vs. the GOP’s

  1. joerad says:

    The GOP agenda according to House Speaker John Boehner and Senate Minority leader Mitch McConnell is that the GOP greatest priority is to make certain that Obama is a one-term president. This goal is more important to them that the greater good of our country.

  2. Joe Mostowey says:

    Seems to be the business communities greatest priority is to make certain that Obama is a one-term president. also.


    Let me give you one example to illustrate this point: in the course of my lecture business I meet a great many owners of small- and medium-sized companies — precisely the men and women we depend upon to create jobs for all the rest of us. One evening, when my lecture to a group of these entrepreneurs had ended and we were all having a drink in the hotel bar, the CEO of a rock-solid manufacturing company said something that stopped the conversation cold: “I’ll be damned before I start hiring people now, just in time to send the unemployment rate plunging so it re-elects the president next year. In a second term, this guy’ll kill my business.” There was a dead silence, and then every other business owner at the table nodded in agreement.


    The one term, or no term at all mentality in Business seems to have been the plan all along, looking at the last few years of hiring-layoffs and the way many banks and business are sitting on capital.

    It’s a new form of political warfare.

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