OPINION: What's the Benefit of Obama's Jobs Plan?
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Here's why politicians don't make quick decisions: they have no idea what the bills and laws they're passing will do.
Obama, last Thursday and today, unveiled and highlighted a $447 billion "non-stimulus" jobs plan. Further, the U.S. GDP for 2010 ranges from $14.58 billion to $14.66 billion, meaning, the plan amounts to about 3 percent of GDP ($447 billion divided by $14.66 billion, nothing too taxing).
Now, let's see what economists and media outlets think. Bloomberg reports Goldman Sachs, J.P. Morgan, and Moody's think the plan will boost GDP by about 2 percent. Okay, so we've just lost a percent with the plan, but maybe it'll pan out better over the long haul.
One analyst from OSK-DMG thinks GDP in 2012 will rise by about 1.8 percentage points.
Nomura Securities sees a 1 percent increase on real GDP, up to 1.5 percent in 2012 overall. Jakarta Globe sees the plan adding 1 to 3 percent to GDP.
The preceding is just a small sampling of estimates floating around. Bottom line, why would U.S. reps vote to reduce GDP (with incentives and spending in the plan) in order to increase GDP by a lesser amount without the bill?
With the U.S. government paying out about $713.1 billion under the American Recovery and Reinvestment Act of 2009 (ARRA), and a rumored 555,029 jobs created as a result, this new bill is going to be a tough one to pass.
(Side Note: This seems like a ridiculous amount of money for job creation, about $1.28 million per position. Over time, the per-person average spending is likely to ebb, but, as the current argument goes, why not just give that money to the people? You'd at least have the baby boomer generation being able to retire, or only work part-time, creating vacancies in the workforce that will be left behind on their departure. Sure, there's valuable information some possess, like head of an engineering department, but a corporate secretary or teacher probably has a line of people waiting to take over. Then you can also forget about having to extend unemployment benefits, which isn't proven to help out job seekers at all.)
Obama, last Thursday and today, unveiled and highlighted a $447 billion "non-stimulus" jobs plan. Further, the U.S. GDP for 2010 ranges from $14.58 billion to $14.66 billion, meaning, the plan amounts to about 3 percent of GDP ($447 billion divided by $14.66 billion, nothing too taxing).
Now, let's see what economists and media outlets think. Bloomberg reports Goldman Sachs, J.P. Morgan, and Moody's think the plan will boost GDP by about 2 percent. Okay, so we've just lost a percent with the plan, but maybe it'll pan out better over the long haul.
One analyst from OSK-DMG thinks GDP in 2012 will rise by about 1.8 percentage points.
Nomura Securities sees a 1 percent increase on real GDP, up to 1.5 percent in 2012 overall. Jakarta Globe sees the plan adding 1 to 3 percent to GDP.
The preceding is just a small sampling of estimates floating around. Bottom line, why would U.S. reps vote to reduce GDP (with incentives and spending in the plan) in order to increase GDP by a lesser amount without the bill?
With the U.S. government paying out about $713.1 billion under the American Recovery and Reinvestment Act of 2009 (ARRA), and a rumored 555,029 jobs created as a result, this new bill is going to be a tough one to pass.
(Side Note: This seems like a ridiculous amount of money for job creation, about $1.28 million per position. Over time, the per-person average spending is likely to ebb, but, as the current argument goes, why not just give that money to the people? You'd at least have the baby boomer generation being able to retire, or only work part-time, creating vacancies in the workforce that will be left behind on their departure. Sure, there's valuable information some possess, like head of an engineering department, but a corporate secretary or teacher probably has a line of people waiting to take over. Then you can also forget about having to extend unemployment benefits, which isn't proven to help out job seekers at all.)
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