Good News and Bad News: Obama’s Plan Would Work, But GOP Won’t Pass It

This morning brought some useful indicators about the outlook for President Obama’s jobs bill. Good news first: Mark Zandi, chief economist at Moody’s Analytics, says President Obama’s job creation plan will likely add 1.9 million jobs, cut the unemployment rate by a percentage point, and grow the economy by 2 percent.

Mark Zandi of Moody’s Analytics said Obama's plan will create jobs and grow the economy. Photo: ##http://www.time.com/time/quotes/0,26174,2084470,00.html #ixzz1XSu3PiaA##Brendan McDermid / Reuters##

The plan includes $50 billion for infrastructure, with an emphasis on transportation and schools, and the creation of an infrastructure bank capitalized at $10 billion.

House Speaker John Boehner said Obama’s ideas “merit consideration” but Senate Republican leader Mitch McConnell was less magnanimous. “If government spending were the answer, we`d be in the middle of a boom right now,” McConnell told reporters. “We`ve been on a spending spree over the last two years.”

Republican candidates for president didn’t hesitate to slam Obama’s plan. Rep. Michele Bachmann said everything in the speech had “already been tried and failed before.” Gov. Rick Perry said the true path to jobs was “smaller government, less spending.” And Gov. Jon Huntsman, once an Obama appointee himself, called the speech a “list of regurgitated half-measures [that] demonstrates that President Obama fundamentally doesn’t understand how to turn our economy around.”

Which brings us to the bad news. Despite Moody’s upbeat analysis of the president’s proposal, stocks tumbled this morning. According to Bloomberg, the gloom wasn’t about the merits of the plan but the likelihood of Congressional passage. “Even as President Obama made an effort to put that plan together,” said James Dunigan, chief investment officer in Philadelphia for PNC Wealth Management, “there’s not a whole lot of confidence that Congress will pass [it].”

I guess it’s not enough for an independent financial institution like Moody’s saying it’s a good plan. As long as a Democratic president proposes it, it’s dead in the water to Congressional Republicans.

  • Alex Thompson

    Critical thinking here – do we really believe what Moody’s says after all these years?  And does anyone really have a solid grip on the relationship between various forms of gov’t economic stimulus and job creation?  I think this recession has busted a lot of theories . . . I’m not saying a job stimulus of this type won’t work (though I am very wary of these payroll tax cuts = sets up more Social Security “reform”) but I’m skeptical of anyone who thinks they know how it will affect the economy.

  • Christian Ross

    Senate Republican leader Mitch McConnell was less magnanimous. “If
    government spending were the answer, we`d be in the middle of a boom
    right now”

    If cutting taxes was the answer, we’d be in the middle of a boom right now too!

  • President Rick Perry will solve everything.  Praise Jesus!

  • INHS

    Don’t be so flippant. That’s God’s son you’re talking about. Jesus, not Perry

  • My Work Plan by Peter Baxter retired Management
    Consultant1 My executive summary. The world has too many people demanding
    too much resources this must be controlled. Only China has achieve
    success in the war against population growth the rest of the world has
    lost. My advice to China is only help those countries that have
    followed your example and controlled their populations. We must have a
    United Nations plan that tackles this problem of overpopulation now2 Marketing and Sales strategy -The United Nations Charter of Human
    Rights states everyone is entitled to their property and this is step
    two we will house everybody by building ecologically friendly homes
    for everybody in the world. We will have a United Nations controlled
    mortgages, that everyone can trust and can afford to pay.3 My team and personnel We need people trained to complete the above
    tasks and to achieve this we will offer free web based training. No
    one will be unemployed again those who are between jobs will be
    retrained on their computers. Employers will estimative their needs
    and this will be the basis for peoples training.
    We don’t have sufficient workers to complete the task of homing
    everyone, my guess is we will need to build homes in factories and
    assemble them on site.Remarks No one will be judged on qualifications alone again but on
    their proven problem solving abilities. We have too many qualified
    idiots and not enough problem solvers.Please compare my plan with President ObamasThis plan will never be accepted because of the Greed of a few
    plutocrats who control everything today including President Obama.However we do have a vote and we can vote for leaders who will
    implement this plan or one just like it for it is based on everyone’s
    human rights.Peter Baxter

  • this writer is an IDIOT, OBAMA never even gave a jobs bill to congress yet, Another Liar News reporter bought and paid for by OBAMA

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