—On Feb. 28, economic forecaster Mark Zandi released a report for Moody’s Analytics predicting that over the next two years, the Republican-led House of Representatives’ proposal to slash $61 billion from the federal budget could reduce real GDP growth by 0.7 % —and cost the economy some 700,000 jobs. Testifying before the Senate Banking and Urban Affairs Committee March 1, however, Federal Reserve chairman Ben Bernanke said that his analysis “doesn’t give a number that high.” The Fed chair said such cuts would result in the reduction of “several tenths [of a percent] on GDP” and “would, of course, have the effect of reducing growth on the margin.”
—The Washington Post‘s Dana Milbank, relying on data compiled by the Center for American Progress, found that the Republican budget plan would force roughly 975,000 Americans from their jobs.
— A Goldman Sachs analysis suggests the GOP’s plan would slow economic growth and damage a fragile recovery. This from the Huffington Post: “Goldman Sachs economic forecaster Alec Phillips said the GOP plan could slow economic growth by up to 2 percent. Even a compromise deal, with $25 billion in cuts could slow growth by 1 percent…In its latest spending plan, the White House predicted GDP growth of 2.7 percent this year.”
These findings, all released within the past week, mock the “fiscally responsible” GOP whose cornerstone talking point is to insert the phrase “job-killing” before every one of President Obama’s policies. Republicans are touting Bernanke’s more optimistic analysis—but even that projects a cut in economic growth and certainly no job-creation boom.
Certainly Boehner’s House made its legislative priorities clear from the get-go: Waging war on women’s reproductive rights, eliminating Planned Parenthood, passing abortion legislation that perverts the meaning of “pro-life”—like HR 358, which would allow “morally conflicted” hospitals to refuse women lifesaving abortions.
Oh, and defunding public radio and TV. That Kenyansocialistmuslimterrorist Big Bird.
On the state level, a GOP governors are systematically spurning the Obama agenda—such as money for high speed rail, which Democrats maintain will create jobs and health care reform. This along of course, there is the transparent, concerted effort to crush labor unions in the name of budget-balancing.
There is, supposedly, an economic philosophy behind the GOP’s fiscal strategy—albeit a flawed one. As Salon’s Andrew Leonard points out:
House Republicans argue that their bill should become law as part of a “cut and grow” strategy that they say, by removing uncertainty about higher taxes to pay for government spending, would spur spending by businesses.
Let’s be clear here. To reach a balanced budget that would permanently remove such “uncertainty” — without ever raising anyone’s taxes ever again — would require budget cuts so deep that the U.S. economy would immediately flat-line. In fact, the only sensible response to the Republican spending plan from the private sector is to be even more cautious. Standard economic theory suggests that sharp budget cuts will slow the economy — why would any company react to that by expanding hiring?”
But isn’t that precisely the point? Mitch McConnell laid his cards on the table right from the start, when he proclaimed that the GOP’s number one priority is to make Barack Obama “a one-term president.” Actually, Republicans got their marching orders early on, from Boss Limbaugh, who infamously declared that he hoped Obama would fail.
Looking toward 2012, GOP presidential candidates range from smarmy Mitt “The Guy Who Laid You Off” Romneycare to Tim Pawlenty—who, despite his action-hero campaign video comes off as the kind of guy the people who give wedgies give wedgies to; to the unelectable Newt Gingrich to—well, Sarah Palin and Michele Bachmann. Barring some other catastrophe, any sane adult knows that a growing economy and a shrinking jobless rate—however slowly—make President Obama’s reelection all but a slam dunk.
So what possible motivation do Republicans have to put America to work? You don’t have to be a Beckian chalkboard conspiracy theorist to suggest that, on the federal and state levels alike, the GOP is actively trying to reverse, or at least stall economic recovery in order to take down Barack Obama.
“It’s not a conspiracy. It’s not that we’re doing this for a political reason to go after the president,” Pennsylvania Gov. Tom Corbett said of his fellow GOP governors’ assault on Obama’s policies.
Salon’s Leonard is also skeptical of the Screw the Economy=Screw Obama theory.
“I don’t know. It’s not that I wouldn’t suspect politicians of such foul Machiavellianism, but I find it hard to buy the thesis that this bunch of Republicans are consciously attempting to damage the economy for political reasons. I think that they just really don’t understand or care about economics. The crew that is in power now has distinguished itself by its ability to reject any kind of objective scientific or economic analysis that doesn’t fit into their political schema. Whether it’s the link between greenhouse gas emissions and global warming or the negative impact of subtracting demand from a weak economy is irrelevant. From the contemporary Republican point of view Obama’s policies must be “job-killing” because, well, he’s Obama!”
I’m not as generous as Andrew Leonard. The POTUS owns the economy, for good (Clinton) or ill (Carter, W). If GOP policies were to bear any economic fruit, well, that’s a nuance voters won’t process. At the most, they’ll say it’s an argument for continuing divided government.
I firmly believe that Mitch McConnell is as good as his word. I think the Koch Brothers, Karl Rove and the rest of the Republican machine will stop at nothing to destroy Barack Obama. I think they’re perfectly capable of taking the American people down, just to return to power and enforce their ideological goals.
Double-digit unemployment—and a double-dip recession would be nice.
And, yes, they’d like fries with that, please. Just to stick it to Michelle Obama.
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