House GOP Still Spinning About ’6.2 Million Jobs’
The House Republican leadership has sent a letter to the White House asserting that it’s answered the call for new stimulus ideas with a tax cut plan -- that’s
Jul 31, 2020373 Shares186.3K Views
The House Republican leadership has sent a letter to the White House asserting that it’s answered the call for new stimulus ideas with a tax cut plan — that’s been debunked by the person whose research it cites.
“„We were encouraged by the comments of your press secretary, Robert Gibbs, yesterday indicating you are open to considering alternative plans for economic recovery legislation if they will meet the test of creating 3 million jobs. Last week, in response to your request for input, the House Republican Working Group on Economic Recovery presented a plan that would create more than twice that number based on the methodology articulated by your nominee to chair the Council of Economic Advisers, Dr. Christina Romer… Dr. Romer’s methodology shows that our plan will create 6.2 million jobs and, with a revenue impact of almost $479 billion, achieves twice the job creation at half the cost to American taxpayers than the plan passed by the House of Representatives last week.
As we’ve known for days, the 6.2 million number doesn’t actually come outof the Romer methodology — it inverts her research on the economic effect of tax increases and assumes that tax cuts will create as many jobs in a recession as she showed that tax increases would destroy. On January 31, the CEA debunkedthe GOP’s version of Romer’s research.
“„CEA Director Romer’s view is that the House analysis is absolutely incorrect. The CEA estimates that the Republican plan would create only 1.7 million jobs, compared to 4.2 million for the Democratic plan.
The CEA also characterized the GOP’s plan as an “apple and oranges” comparison, and a political game.
Hajra Shannon
Reviewer
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