Economists: Obama's $447 Billion Jobs Plan Could Help Avoid Recession

President Obama with Treasury Secretary Timothy Geithner and National Economic Council Director Gene Sperling in August (White House)

President Obama is trying to drum up support for the American Jobs Act, his $447 billion plan to "put more people back to work and put more money in the pockets of working Americans." While there don't seem to be enough votes in the Senate to pass it, maybe this will change some politicians' minds: Bloomberg News asked economists about the plan and it turns out they think the program "would help avoid a return to recession by maintaining growth and pushing down the unemployment rate next year."

Bloomberg News adds, "The legislation, submitted to Congress this month, would increase gross domestic product by 0.6 percent next year and add or keep 275,000 workers on payrolls, the median estimates in the survey of 34 economists showed. The program would also lower the jobless rate by 0.2 percentage point in 2012, economists said." One economist says, "It leads to more retention of workers than net new hires," but another points out, "The important thing to consider is: What happens if we don’t do anything?" because not doing anything could lead to a recession.

The Reverend Al Sharpton is planning a march in Washington D.C. next month to draw attention to the nation's unemployed and to support the American Jobs Act. Sharpton explained, "We will bring forth the masses who have not been heard in the midst of the jobs debate. As the president fights for a jobs act, as supercommittees meet, they need to hear marching feet. This is to send a message to Congress."

Obama was in Colorado to discuss the bill. He also poked at his opponents, "If asking a millionaire to pay the same tax rate as a plumber or a teacher makes me a class warrior, a warrior for the middle class, I will accept that; I’ll wear that as a badge of honor. Because the only class warfare I’ve seen is the battle that’s been waged against the middle class in this country for a decade now."

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By Jen Chung in News on September 28, 2011 3:10 PM

Comments [rss]

Spirit of 76

"would help avoid a return to recession by maintaining growth and pushing down the unemployment rate next year."

Precisely why the plan will never pass. Does anyone really think the Republicans would allow Obama to get any credit for the economy in an election year?

BottomlessChips

Plumbers are possibly the worst example he could've chosen.

They are unionized thugs. They tried to claim waterless urinals would someone spread diseases and we'll all get sick.

Furthermore, it "very well could" help...and what if it doesn't?

Cat1982

his first stimulus didnt create any jobs why in gods name would this one? These people are delusional.

Amber

Except it DID create about 2 million jobs, but okay. http://nyti.ms/q3uTR6

You sound like you have a case of "It didn't directly affect me, therefore it obviously had zero impact on the rest of society."

Cat1982

those are mostly short term jobs and government jobs, in which case only means the government is spending even more. with real unemployment well over 10%, its safe to say the whole thing was a bust. the government conveniently doesnt count people who have been unemployed so long they arent receiving benefits anymore.

SFNY

Guess those 2 million people would have been better off staying home, not working, not feeding their families, and not paying their rent.

Sarah Pappalardo

And people like you conveniently ignore what could've happened if there were no stimulus to begin with.

unretrofiedforu

I suppose that's the fundamental questions out of all of this, amirite?

In the end, while the stimulus had the net effect of keeping the paper in our pockets valuable, it's real goal was to keep the predatory modern capitalist system going.

However there comes to a point; do we continue the charade and live every day like rats in cages - or do we say finally 'enough'.

I hope we're prepared once 'enough' comes though - it won't be pretty.

BottomlessChips

And you know what would've happened?

Cat1982

no one knows what would have happened, but the fact is, the government doesnt HAVE the money to be doing this, and no one knows how well its really worked and what long term consequences are etc. thats the whole problem, no one knows.

Amber

So then what do you suggest? Not doing anything and sliding back into what would be an inevitable recession?

Lisanne!

Please, no nice language. The word is DEPRESSION.

BottomlessChips

False choice

Cat1982

its not clear that that is what happened. Let's use just a regular old person as an example. If you had no money and were in debt, would your response to that situation be to spend more money?

Amber

Did you ever hear of that little quote, "You have to spend money to make money?"

BottomlessChips

Yes, that is true in private business.

Regardless, I'm sure you bought that line of BS will Bush spent like a drunken sailor on his pet causes, right?

Guest

Yes because an Obama supporter would have definitely also been a Bush supporter.

..........

And if I misunderstood your poorly phrased comment, than I apologize.

unretrofiedforu

Do you really expect that statement to stand as a real point?

I admit the fairweather liberals that are all in support of throwing more money away may have their heads up their asses but so do the so called 'fiscal conservatives'.

Can't we agree that we're all 'fucked' at the end of the day and move on to happy hour and not care anymore? That's really all they want from people nowadays and lord knows they're gonna get it.