Jobs and Economic Recovery
What You Need to Know
- The GOP Pledge of cutting spending by more than 22% and permanently extending the Bush tax cuts will lead to a loss of over 1 million jobs.
- Tax cuts deliver less than 40 cents of economic activity for every dollar of cuts, compared to $1.20 in economic output for every dollar of government spending on infrastructure or $1.90 for every dollar of unemployment benefits.
- The typical unemployed worker is now out of work for over twenty weeks. The “long-term unemployed,” workers who have been unemployed for six months or more, made up 42 percent of the total in June 2010, the highest since the Great Depression.
- Without the Stimulus Bill (the American Recovery and Reinvestment Act), unemployment would be between 10.3% and 11.4% based on CBO estimates.
- It took the massive government spending caused by World War II to finally get us out of the Great Depression. Federal spending during the war was 250% of GDP in 1940 (if you want an alternative measure, defense spending was 125% of GDP in 1940) ; the Stimulus Bill was less than 6% of GDP.
- Despite having a public debt of close to 120% of GDP after WWII, the U.S. was still able to enter a 25-year boom period with average growth rates of 4% per year.
- Every million additional jobs we create reduces the deficit by $54 billion.
- Because of historically low interest rates, borrowing now for major investments to rebuild America will be cheaper than if we put it off—and will also help boost our recovery today.
- America is suffering from a $1 trillion annual gap in demand, but the Recovery Act only plugged with $814 billion in funding , a total undermined by $425 billion cutbacks in state and local government spending.