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When it comes to job creation, Andrew Fieldhouse and Ethan Pollack at the Economic Policy Institute are much happier with President Obama's 2013 budget than the one he presented for 2012. That, they say, is because the new budget has a $350 billion job package and last year's was focused on deficit reduction. That choice, as noted by many critics, both amateur and professional, was a big mistake.

The two men say the results of the proposed 2013 spending compared with not spending it would be 1.5 million jobs in fiscal year 2012 and 1.3 million jobs in fiscal year 2013. It would also reduce the unemployment by 0.5 percent over what it would be without the package for 2012, and 0.4 percent over what it would otherwise be by September 2013, Fieldhouse and Pollack say.

Most of that $350 billion would be spent in the first 18 months:

• $95 billion in the payroll tax cuts (employee-side)
• $80 billion in other business tax cuts (including a $25 billion hiring credit)
• $45 billion in emergency unemployment benefit extension
• $25 billion in transportation infrastructure investments ($50 billion over ten years)
• $20 billion in school facility repair and modernization
• $30 billion in retaining or rehiring teachers and first responders
• $25 billion miscellaneous neighborhood stabilization, job training, energy efficiency, VA conservation jobs, infrastructure bank, and manufacturing incentives
The methodology for their analysis can be found here.

The only problem with this scenario is that Republicans have called Obama's budget "dead on arrival." They're already suffering from a considerable uptick in good economic news and are determined not to allow any more to happen in an election year.

Originally posted to Meteor Blades on Thu Feb 16, 2012 at 11:40 AM PST.

Also republished by Daily Kos.

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Comment Preferences

  •  Tip Jar (26+ / 0-)

    Don't tell me what you believe, show me what you do and I will tell you what you believe.

    by Meteor Blades on Thu Feb 16, 2012 at 11:40:47 AM PST

  •  They already are caving on the payroll tax cut (0+ / 0-)

    Who says they won't cave on some of these other things?

    "A conservative is one who admires radicals centuries after they're dead." -- Leo Rosten; My blog

    by Kylopod on Thu Feb 16, 2012 at 11:43:42 AM PST

    •  Because Grover Norquist is (0+ / 0-)

      breathing hot fire down their necks.

      •  F*ck Grover Norquist (2+ / 0-)
        Recommended by:
        Citizenpower, Matt Z

        Do you think the people care about his idiotic and cruel opinions? I think the administration should take it to the wall and see who backs down. Just once.

        Time is an enormous, long river, and I’m standing in it, just as you’re standing in it. My elders are the tributaries, and everything they thought and every struggle they went through & everything they gave their lives to flows down to me-Utah Phillips

        by TerryDarc on Sat Feb 18, 2012 at 05:36:59 PM PST

        [ Parent ]

  •  The pundits declared it dead too. (2+ / 0-)
    Recommended by:
    marina, jfromga

    No matter how much "Austerity" is proven disasterous in Europe the pundits love the idea.

    I do work for a show about money and the host doesn't understand why we continue to push it too. Yet every time we do a Wallstreet Journal hit we hear the same comments about how Europe needs to apply more austerity, not less.

    But then again, facts do have a liberal bias.

    I was Rambo in the disco/ I was shootin' to the beat/ When they burned me in effigy My vacation was complete. Neil Young

    by Mike S on Thu Feb 16, 2012 at 11:51:45 AM PST

    •  When I went to college in the late 60's (5+ / 0-)

      All students were required to take two Economics courses.  Anyone who has taken Econ 101 knows that cutting government spending and cutting government jobs and government contractor jobs cuts jobs, and this job loss reverberates across the economy as fewer people spending less money leads to more job losses.  

      I think the Republicans appeal to less educated people who either have never been to college, or who did not take Economics in college.

      "We have always known that heedless self-interest was bad morals, now we know that it is bad economics." Franklin Delano Roosevelt, Jan. 20, 1937

      by Navy Vet Terp on Sat Feb 18, 2012 at 05:13:35 PM PST

      [ Parent ]

      •  It's obvious even without Eco 101 (3+ / 0-)
        Recommended by:
        Navy Vet Terp, winkk, Matt Z

        Which I never took, by the way.  :-)  Basic Algebra will get you this one.

        The nation employs X people.  If the government lays off 1 person, the nation employs X-1 people.  This number is 1 less than X, obviously.

        That 1 person contributes less in taxes (by Z), and spends less (by A).  The government takes in Y-Z dollars where it would have taken in Y.  The national economy is reduced by A dollars.

        If that happens enough, obviously the government has to reduce the workforce by more to compensate for the loss of Z, and the national economy lays off employees from the loss of A.

        Vicious cycle.

        (-6.25, -6.77) Moderate left, moderate libertarian

        by Lonely Liberal in PA on Sat Feb 18, 2012 at 05:24:54 PM PST

        [ Parent ]

      •  I think you're over-thinking it. (3+ / 0-)
        Recommended by:
        Navy Vet Terp, Howdidigethere, Matt Z

        Republicans love government spending (see: Reagan and both Bushes).  They just don't like it when it might improve the economy and secure a second term for the black Democratic POTUS they despise.

        •  They Also Hate Tax Cuts (4+ / 0-)
          Recommended by:
          sharman, Navy Vet Terp, Matt Z, JBraden

          When they're for employees. They are lying sacks of shit and need to be called out on this, especially during an election year.

          This kind of austerity crap works within the Republican primaries, but for god's sake, don't make THAT the standard by which we govern this country. Fuck the Republicans and their tea party pony they rode in on!

          Time is an enormous, long river, and I’m standing in it, just as you’re standing in it. My elders are the tributaries, and everything they thought and every struggle they went through & everything they gave their lives to flows down to me-Utah Phillips

          by TerryDarc on Sat Feb 18, 2012 at 05:40:11 PM PST

          [ Parent ]

      •  I skipped Econ 101, but even a (2+ / 0-)
        Recommended by:
        Navy Vet Terp, Matt Z

        maroon like me can add 2 + 2. One does not need to be a rocket scientist to conclude that cutting and slashing totally kills an economy already on its death bed.
        ALEC, the KochBros, Murdoch and all those other Teapub Billionaires know this $h!t, too. They champion cutting and slashing and "austerity" b.s. to kill the Economy and kill Obama. Just another nail in Obama's coffin as far as they're concerned. Anything to remove the N-word from the White (only) House. The more nails the better! Unfortunately (for them) Obama's Economy picking up steam just at the right time. A shame. ;)

      •  Honey, I hate to tell you this... (1+ / 0-)
        Recommended by:
        Matt Z

        ...but a college education doesn't mean people have been taught basic economics and therefore have a damn bit of sense about money.  Like the guy said...you cain't fix stoopid.  

        This is the kind of valuable teaching that should be required learning, like they used to require that we were taught "Government" or "Democracy" or whatever the school system called it.  Do they still teach that in middle/high school anymore?  The idea was that we were to understand our system of government, why it was set up the way it was, checks and balances, etc, etc...and generally educated on the workings of the country.  

        Fortunately, I think that is beginning to change regarding the economic system.  One of the very few good things to come from our economic turmoil is that most Americans, but especially the generation currently entering adulthood is very much aware that the system is broken.  It's very personal now, and we all feel it.  

    •  cause their version of america (3+ / 0-)
      Recommended by:
      TerryDarc, Navy Vet Terp, Matt Z

      is only rich white 1% prosper.

      everyone else goes to hell.

  •  If we can't have the success of actual policy... (3+ / 0-)
    Recommended by:
    jfromga, Albanius, Larsstephens

    ...we can have the optics of the Republicans killing legislation experts say will create jobs.

    Simple question: In the years since Republicans successfully urged the disempowering of workers and unions in the Midwest, what has happened to those states economies?

    by Stephen Daugherty on Thu Feb 16, 2012 at 12:01:44 PM PST

    •  that 'hard pivot' to social issues should be (0+ / 0-)

      optical enough.....but we watch.....supertuesday upcoming.

      •  And F*ck Frothy and Willard! (0+ / 0-)

        And the tea party pony THEY rode in on. This is something even the American people can understand.

        Cut govt. spending = Cut jobs. It IS that simple.

        Time is an enormous, long river, and I’m standing in it, just as you’re standing in it. My elders are the tributaries, and everything they thought and every struggle they went through & everything they gave their lives to flows down to me-Utah Phillips

        by TerryDarc on Sat Feb 18, 2012 at 05:42:11 PM PST

        [ Parent ]

  •  476 billion for 6 years (2+ / 0-)
    Recommended by:
    jfromga, Meteor Blades

    about 80 billion a year for infrastructure, equals about 1.6 million jobs per year. Based on 2 million jobs per 100 billion spent. That was the package I read about earlier in the week.

    Now here, I read

    • $25 billion in transportation infrastructure investments ($50 billion over ten years)
    Sigh, OK its better than nothing, but I insist on talking about a solution that is based on the scale of the problem.

    We should be spending 5% of GDP on infrastructure each year, instead we spend 2%. Spending about 750 billion each year on infrastructure, would create about 15 million jobs.

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Thu Feb 16, 2012 at 12:17:54 PM PST

  •  Yes, the GOP has ... (0+ / 0-)

    so all the more reason to vote em out of office.

    Real Patriots serve Jury Duty.

    by David in Burbank on Thu Feb 16, 2012 at 12:28:05 PM PST

  •  hammer them with it (4+ / 0-)

    since the advent of the occupy movement, and the president's more aggressive tone and agenda on economic fairness issues, the republicans have been backing down. make them vote against jobs again and again.

    The cold passion for truth hunts in no pack. -Robinson Jeffers

    by Laurence Lewis on Sat Feb 18, 2012 at 05:07:29 PM PST

  •  Except that it's ass backwards. (0+ / 0-)

    That $95 Billion and $80 Billion should go toward infrastructure, job training, manufacturing and "neighborhood stabilization," while the other $175 Billion can go toward the rest of that pile.
    But, yeah, it's a start. Better than nuthin'.

  •  "Uptick." I like that word. Sounds like an... (1+ / 0-)
    Recommended by:
    Matt Z

    ...affliction of some sort. May all Republicans suffer an uptick this election season.

    "So, am I right or what?"

    by itzik shpitzik on Sat Feb 18, 2012 at 05:38:41 PM PST

  •  ...Rat Bastards!... (2+ / 0-)
    Recommended by:
    itzik shpitzik, Matt Z
    The only problem with this scenario is that Republicans have called Obama's budget "dead on arrival." They're already suffering from a considerable uptick in good economic news and are determined not to allow any more to happen in an election year.
    You know what?  I'm starting to NOT like Republicans...
  •  the payroll tax cut needs to end (1+ / 0-)
    Recommended by:
    Mother Shipper

    It is a political football which keeps getting kicked down the road. It should either be made permanent or the White House should have some guts and propose to end it.

  •  How long will the good news last (0+ / 0-)

    Sorry to be a pessimist, but has anyone seen this? It gave me a really sick feeling because it rings true.

    A Gasoline Conspiracy to Set Fire to the Obama Administration?

    http://www.washingtonmonthly.com/ten-miles-square/2012/02/a_gasoline_conspiracy_to_set_f035490.php#

  •  This'll be a fun thing to lock horns with (1+ / 0-)
    Recommended by:
    Matt Z

    Republicans about on an election year.

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