Sequester Spending Cuts Would Cost 700,00 Jobs

February 20, 2013 By: seeta Category: Anti-Racism, Civil Rights, Consumer Rights, Economic Terrorism, Workers' Rights

From ThinkProgress:

President Obama called, once again, for Republicans in Congress to support a plan to void the so-called “sequester,” the automatic budget cuts scheduled for March that were set in motion by the 2011 debt ceiling deal. House Republicans responded by releasing a statement that called for eliminating job training and financial literacy programs and by mocking the very idea of government funded scientific studies.

But engaging in the sort of austerity included in the sequester is a terrible idea with the economy in its current fragile state. As Macroeconomic Advisers noted today (reiterating its previous analysis), the sequester will knock 0.6 percent off of economic growth this year, killing 700,000 jobs:

  • – Our baseline forecast, which shows GDP growth of 2.6% in 2013 and 3.3% in 2014, does not include the sequestration.
  • – The sequestration would reduce our forecast of growth during 2013 by 0.6 percentage point (to 2.0%) but then, assuming investors expect the Federal Open Market Committee (FOMC) to delay raising the federal funds rate, boost growth by 0.1 percentage point (to 3.4%) in 2014.
  • – By the end of 2014, the sequestration would cost roughly 700,000 jobs (including reductions in armed forces), pushing the civilian unemployment rate up ¼ percentage point, to 7.4%. The higher unemployment would linger for several years.

Obama Takes Second-Term Agenda on the Road

February 13, 2013 By: seeta Category: Anti-Racism, Civil Rights, Consumer Rights, Economic Development, Workers' Rights

From NYT:

Setting out to sell his second-term agenda, President Obama planned to travel to an engine-parts factory here on Wednesday to promote the revival of American manufacturing, one of the core messages of his State of the Union speech on Tuesday evening.

It was the first of three stops this week in which Mr. Obama, having spoken to a divided Congress, will now try to build popular support for his proposals to invest in manufacturing and education, and raising the minimum wage — an agenda that he claims will help secure the prosperity of the middle class.

In visiting a production plant owned by the Canadian auto-parts maker, Linamar, Mr. Obama hopes to showcase his goal of making the United States a magnet for manufacturing jobs. That was one of three economic pillars of his address to a joint session of Congress.

Linamar Corporation, which makes parts for heavy-duty engines, recently opened its fourth American manufacturing plant in this small town on the outskirts of Asheville, occupying a closed Volvo construction equipment factory. The plant has hired 160 workers, according to the White House, and plans to take on 40 more by the end of 2013.

In his speech on Tuesday, Mr. Obama reiterated his ideas for making the United States more attractive for manufacturing, which include eliminating tax breaks for companies that move jobs overseas and offering incentives for them to build factories in the United States.

Various & Sundry, Open Thread

September 12, 2011 By: seeta Category: 2012 Election, Anti-Racism, Civil Rights, Economic Development, Economic Terrorism, Science/Technology

Good evening, friends.

Here’s a quick round-up of earthling happenings tonite:

Obama’s sent his jobs plan to Congress. The $467-billion proposal includes cutting back on deductions for individuals earning at least $200,000 a year, or for families earning $250,000 or more.

In other news, 50 exoplanets have been found.

A little perspective: