FRAME: In the spirit of compromise, Democrats came to the table last week with a serious offer that cuts $51 billion from the budget, while protecting jobs. So far, Republicans have refused to budge from their extreme proposal that would destroy hundreds of thousands of American jobs all across the country while making Americans less safe. Republicans have a responsibility to abandon their ideological agenda and work with Democrats to get down to the serious business of reducing the deficit without killing jobs.
Talking Points: Republicans Should Come to the Table with Something New, Not A Bill That Cuts 700K Jobs.
· Republicans’ plan would destroy 700,000 American jobs. [Mark Zandi estimate]
· Economists from across the spectrum agree that Republicans’ plan would destroy jobs and hurt our economic growth:
o Ben Bernanke: “Federal Reserve Chair Ben Bernanke said Wednesday that House GOP’s 2011 spending plan would likely cost ‘a couple hundred thousand jobs,’ a number he called ‘not trivial.’” [Politico, 3/2/11]
o Mark Zandi: “Economist Mark Zandi, who has advised congressional leaders of both parties, estimated that the Republican proposal would lead to 700,000 fewer jobs by the end of 2012.” [Reuters, 3/3/11]
o Goldman Sachs: “The Republican plan to slash government spending by $61bn in 2011 could reduce US economic growth by 1.5 to 2 percentage points in the second and third quarters of the year, a Goldman Sachs economist has warned. The note from Alec Phillips, a forecaster based in Washington, was seized in the ongoing US budget fight by Democrats as validating their argument that the legislation approved by the Republican-led House of Representatives last Saturday would do significant damage to the US recovery.” [Financial Times, 2/23/11]
o Letter signed by 300 economists, including two Nobel laureates: “As economists, we believe it is short-sighted to make budget cuts that eliminate necessary investments in our human capital, our infrastructure, and the next generation of scienti?c and technological advances. These cuts threaten our economy’s long-term economic competitiveness and the strength of our current economic recovery.” [3/1/11]
· Last month, our economy added 192,000 jobs and the unemployment rate fell to the lowest level since April of 2009. We are moving in the right direction, but we need to stay focused on creating jobs, not destroying them. [BLS Employment Report]