Newsweek: GOP would produce fewer jobs, bigger deficit

Because Americans are so unhappy with the current direction of the country, Republicans are expected to make big gains in the upcoming mid-term elections. It doesn’t seem to matter that GOP leaders such as John Boehner have refused to declare any agenda that they would use to govern, should their party take back Congress.
But Newsweek has an interesting analysis of GOP proposals, saying that the nation’s economic problems would worsen under a Republican Congress:

There’s only one problem with Boehner’s message: so far, the things that Republicans have said they want to do won’t actually boost employment or reduce deficits. In fact, much the opposite. By combing through a variety of studies and projections from nonpartisan economic sources, we here at Gaggle headquarters have found that if Republicans were in charge from January 2009 onward—and if they were now given carte blanche to enact the proposals they want to—the projected 2010–2020 deficits would be larger than they are under Obama, and fewer people would probably be employed.

The math is pretty straightforward. Let’s start with the deficit. According to the Congressional Budget Office, Obama’s stimulus plan is projected to increase budget deficits over the next decade by $814 billion. That’s a big number. But Republicans opposed the legislation refused to provide an alternative, and now insist that it’s been a total failure. So let’s be generous and subtract it from their side of the equation. The Obama deficit: $814 billion. The GOP deficit: $0.

Next up is health-care reform. Obama passed it; Republicans want to repeal it “lock, stock, and barrel.” The reason, as Senate Minority Leader Mitch McConnell explained in July, is that “we all know that it’s going to increase the deficit.” Unfortunately for the GOP, though, nonpartisan experts tend to disagree. Just this Tuesday, for example, the CBO released a letter saying that Obama’s health-care-reform legislation would “reduce the projected budget deficit by $30 billion over the next 10 years,” while repealing the law would generate “an increase in deficits … of $455 billion … over that [same] period.” Factor those figures into the equation and the Obama deficit falls to $784 billion. The GOP deficit, meanwhile, rises to $455 billion. Getting warmer.

The final piece of the puzzle is the Bush tax cuts. Obama wants to extend them for the 95 percent of taxpayers making less than $250,000 a year; Republicans want to extend them for everybody. How will these extensions affect the deficit? Glad you asked. According to data compiled by The Washington Post, “the Democratic proposal would add about $3 trillion to the deficit during the next decade, while the GOP plan would cost $3.7 trillion.” That brings the total Obama deficit to $3.784 trillion over 10 years, and its GOP counterpart to—drumroll, please—$4.155 trillion.

If the GOP takes back Congress, the next few years will prove interesting, indeed.

288 comments Add your comment

joe

August 30th, 2010
7:30 am

I call BS on this…Newsweek has morphed into a liberal rag piece of crap…along the lines of the AJC or Rolling Stone. Fact is, if you want jobs, vote GOP in Nov because businesses are raking in the profits, but sitting on them until there’s an administration in office that is more friendly to big business and/or capitalism. The fact that CT chose to present newsweek’s stand, just shows how wrong they are.

Pluto

August 30th, 2010
7:43 am

I don’t remember our fearless leader identifying too many specifics in his rise to power but thanks for straightening it all out for us.

nelson

August 30th, 2010
7:44 am

It is not the GOP that would produce fewer jobs, it is automation. Accelerating computer technology is the primary cause of the current global economic crisis. Walmart will be entirely automated in the near future. There will not be anymore of those surly people with “Can I help you on the back of their jackets?’ It will be an automated voice saying, Tell me what you want and I will get it for you. How many employeees does Walmart have? Hundreds of thousands, all out of a job. You can blame the GOP but the jobs will be gone either way. Politics will be more of a game than a job, sort of like Monopoly.

andygrd

August 30th, 2010
7:44 am

I am dissatisfied with both Parties. The CBO is providing estimates, and they have been reliable how many times in the past? As an independent conservative, I have seen a lot of finger pointing and negative comments on both sides of the isle, but have yet to see true action plans.

Newsweek analysis, sorry, but they lost their credibility a long time ago… I am still searching for respectable media…. It would be nice to find a reliable news source, that is not biased and presents the facts..

martin

August 30th, 2010
7:49 am

Neither parties are offering real solutions to help the economy grow and reduce the deficit. All those politicians are worried about is their status and their power. They don’t represent us, they don’t care about us. A cynics view anyway. Which politics makes me more and more cynical by the hour.

By the way, Cynthia, I hope you had a great vacation!

arnold

August 30th, 2010
7:52 am

I’m still waiting for trickle down economics to get to me. It is my estimate with the GOP in charge, I’d get zip.

Tommy Maddox

August 30th, 2010
7:58 am

Can the GOP actually create less jobs and more deficits than what we are seeing from the present Administration?

Peadawg

August 30th, 2010
8:06 am

“Newsweek: GOP would produce fewer jobs, bigger deficit”

Just another attempt to take a jab at the GOP while ignoring the current administrations failures. Besides promising hopey changey, what is Obama’s agenda?

Eric Pearson

August 30th, 2010
8:07 am

A cursory glance at recent GOP history would indicate that Cynthia is exactly right. Facts are facts….unless you’re one of those “Christians” who creates his own facts. Is that a possibility Joe, Pluto, Tommy, etc, etc…?

Shelly Powell

August 30th, 2010
8:09 am

Why it so hard for some to understand; if you send jobs out of the country there will be fewer jobs. This is the issue to be solved.

James

August 30th, 2010
8:10 am

Right up there with People saying Brad and Angelina having problems. Wonder what Time magazine or the AJC had to say.

ctucker

August 30th, 2010
8:11 am

martin, I did have a good vacation — a staycation, so popular in today’s economy. But it was pleasant, nevertheless.

ctucker

August 30th, 2010
8:12 am

andygrd, Discount Newsweek if you like, but the Congressional Budget Office, which doesn’t answer to either party, is widely regarded as a non-partisan, independent and rigorous analyst with good results.

ctucker

August 30th, 2010
8:13 am

nelson, I agree that there are developments, such as automation, that are affecting the economy and beyond the control of either party.

paleo-neo-Carlinist

August 30th, 2010
8:15 am

first off, no politician or President ever “created” a job. even the “jobs” created via the military or government buracracy are as much “deficits” as “jobs” (ergo, pick your poison). as with any financial crisis, this mess is about spending and greed. the Randians will tell you “rational self-interest” breeds progress, but it also breeds cheating (especially, when de-regulation is encouraged and the proverbial foxes guard the henhouse). contrary to Gordon Gecco; “greed” is not good. at the government level, greed produces “pork”. nelson is barking up the correct tree, folks. ecomonies change (we changed from agriculture to production/industry to service). the double whammy today is; even the technical jobs (running the machines, which automate retail jobs such as check-out, ATM, etc.) are being outsourced because corporations are structured to “employ” paper shufflers and bean counters. add to this mess the fact that both parties (ALL POLITICIANS) are in the pork brokering business and not the governing business, and there is your perfect storm.

Peadawg

August 30th, 2010
8:16 am

“the Democratic proposal would add about $3 trillion to the deficit during the next decade, while the GOP plan would cost $3.7 trillion. That brings the total Obama deficit to $3.784 trillion over 10 years, and its GOP counterpart to—drumroll, please—$4.155 trillion.”

So either way we’re screwed. It seems to me that NEITHER party has a plan to cut the deficit.

Poor Boy from Alabama

August 30th, 2010
8:16 am

If a bullfrog had wings he wouldn’t bump his butt every time he jumped.

This is pretty lame analysis from Newsweek. Let’s debunk it point by point.

1. CBO Analysis of Obama stimulus plan vs. nothing from GOP – Who knows what the GOP would have done? What we do know is that the CBO analysis of the stimulus package used similar economic models to those used by Team Obama. Those models predicted that unemployment would not go much above 8% if the package was passed. That didn’t happen so using the same models is “GIGO”, aka garbage in, garbage out. Economists such as Robert Barro of Harvard have presented very different estimates of the multiplier effects associated with the stimulus. Barro thinks the stimulus resulted in less than one dollar of economic growth for each dollar spent whereas the CBO model assumes an overall multiplier close to 1.5. It’s quite possible that the Republicans could have come up with something that would have produced better economic growth and lower unemployment. That would have resulted in higher tax revenues and a lower deficit. It’s also quite possible that government spending wouldn’t have risen as quickly under Republicans as it did under Obama. That would have helped with the deficit also. The reality is that we don’t know what would have happened under Republicans. What we do know is that we’ve currently got 9.5% unemployment and a budget deficit above $1.3 trillion. .

2. Healthcare Reform – The Chief Actuary for Medicare/Medicaid has issued a report that says total US heallthcare spending (public and private sectors combined) under Obamacare will rise faster than it would if Congress had done nothing. Moreover, the CBO analysis doesn’t extend far enough out to include the full costs of the bill. All we know for sure is that Obamacare will be expensive and is an administrative nightmare. It’s more than 2,000 pages long and creates layer upon layer of bureaucracy. Have you seen the org chart developed by Representative Brady of TX?. Republicans presented quite a few ideas at the meeting with Obama and Democrats at Blair House. We don’t know what would have happened if they had gotten their way.

3. Bush Tax Cuts – Looking at the Bush tax cuts in isolation is silly. Lots of changes on both the spending and revenue sides will be required to reduce the deficit. In the meantime, now is not a good time to raise taxes on anybody, even top earners since they account for about 25% of consumer spending. Mark Zandi and other economists recommend against letting the Bush tax cuts expire for anybody until the economy recovers. Neither party has presented much of a plan for dealing with the deficits long term.

We don’t know what would have happened under Republicans, but we can see the Obama bullfrogs bumping their butts every day. Almost every poll says that a majority of Americans don’t think Obama is doing a good job with the economy and more than 60% of Americans think the country is headed in the wrong direction. We’ll find out soon enough what Republican bullfrogs can do.

MiltonMan

August 30th, 2010
8:17 am

The same newsweek that was sold for a $1.

joe

August 30th, 2010
8:18 am

@eric, what recent GOP history…the most recent is BO and his appointees, which despite billions in bailouts resulted in more unemployment (10 percent) than under any previous administration since our own Jimmy C. If Barney Frank hadn’t made possible Fannie and Freddie giving housing loans to under-qualified applicants, this mess wouldn’t be nearly as bad as it is now. Yea, the Dems got it right…not.

Teller of Truth

August 30th, 2010
8:19 am

Cash-Poor Governments Ditching Public Hospitals

Her comes Obamacare

Tundra Dude

August 30th, 2010
8:20 am

Imo, it’s too late to worry about the deficit and 10-year projections.

“The US is insolvent and faces bankruptcy as a pure debtor nation but the rating agencies still give it high rankings ”
Guan Jianzhong, chairman of Dagong Global Credit Rating

“U.S. Is Bankrupt and We Don’t Even Know It” ~ Laurence Kotlikoff ( economics professor and former Senior Economist for the President’s Council of Economic Advisers )

Forget about Friday the 13th.
Many on Wall Street took to whispering about an even scarier phenomenon—the “Hindenburg Omen.”
The Omen, named after the famous German airship in 1937 that crashed in Lakehurst, N.J., is a technical indicator that foreshadows not just a bear market but a stock-market crash. Its creator, a blind mathematician named Jim Miekka, said his indicator is now predicting a market meltdown in September.

Bubba Bob

August 30th, 2010
8:21 am

What, not Beck-bashing? I’m shocked.

paleo-neo-Carlinist

August 30th, 2010
8:24 am

peadawg, welcome to the fight (”neither party has a plan…”). the fundamental flaw in all of this is; neither party has a plan because both parties are dedicated to ’serving’ special interests. a politician will package legislation with a beautiful conceptual bow (war on terrorism, fight climate change, deregulation/regulation of banks, healthcare fo all Americans, etc.), but in reality, most legislation is the handywork of lobbyists; who don’t care about “deficits” or “jobs” or “the economy” (save their jobs, their cashflow and the economic health of their clients/employers).

Bubba

August 30th, 2010
8:24 am

The CBO, in the preface to the latest report, acknowledged that the numbers are based on “evidence from similar policies enacted in the past and on the results of various economic models.”

You should read Kyle Winfield’s piece from last week,

ObamaCare: Bending the cost curve upward

Teller of Truth

August 30th, 2010
8:25 am

The most recent report came Friday, when the government reported that the economy grew at a much slower pace in the second quarter than previously estimated. The gross domestic product, a broad measure of economic output, grew at a 1.6% annual rate, 2% is break even. down from an initial estimate of 2.4%, and slower than 3.7% in the first quarter.

The dems have this economic thing all figured.

CT
You need a vacation, no better yet retire I think what few braincells you had are fried.

Honest Broker

August 30th, 2010
8:27 am

Like the current process is working so well!

paleo-neo-Carlinist

August 30th, 2010
8:32 am

tundra dude; and Al Gore is whispering about the dangers of climate change. Wall Street is fueled by “whispers” and many are disinformation desgined to create panic and produce sell offs. The stock market used to be about finding solid companies and “investing”. since the 80’s it has become a casino where high rollers (hedge funds)gamble (”short selling”) as opposed to “invest”. in shirt; “odds” and “point spreads” have replaced “fundamentals” in terms of the value of a stock or the “risk” associated with investing. f a “crash” is coming in September; it (like all crashes) will be a “buying” opportunity for the masters of the universe.

ByteMe

August 30th, 2010
8:33 am

Facts are lib’ruhl.

eddy

August 30th, 2010
8:33 am

And what would you think Time would say……Democrats are wonderful and everything they do is for the “little people” and of course the Repubs are bad, down right evil, you ‘no. It doesn’t matter…..November elections will cleanse Congress..House and Senate so that the idiotic and debt increasing bills can be stopped if not repealed. Oh by the way, I am an independent but this time I’ll ride the Repub horse ’cause the Dems have failed miserably. Maybe Obama can audition for America’s Got Talent….not sure what that talent is but it is rather superficial in any event.

jt

August 30th, 2010
8:40 am

.Yea, MiltonMan beat me to it. Does anyone actually read this rag anymore,
let alone BELIEVE it.???????????????

One dollar?

Since 2008, Newsweek has undergone a series of internal and external changes designed to shift the magazine’s focus and audience while also shoring up the title’s finances. Instead, losses at the newsweekly accelerated: revenue dropped 38 percent from 2007 to 2009. The freefall in revenues prompted an August 2010 sale by Newsweek owner Washington Post Company to 92 year-old audio pioneer Sidney Harman – reportedly for $1 and an assumption of the magazine’s liabilities by purchaser Harman.[1][2] Editor Jon Meacham announced he would depart from the magazine upon completion of the sale.[2]

James

August 30th, 2010
8:42 am

Poor Boy- no, no, no, can’t be true. This is going to work- Obama aka Captain Smith is leading us right to the big ol’ iceburg. On another note Calderon’s chief investigator of the recent mass murders is missing- shocking. May Captain Smith can invite Calderon to lecture us again over a beer.

CT- you stoned out of your mind could run Mexico better than it has been the last 2 decades. I feel sorry for those very bright folks in a country that was given as much as any in natural resources.

AlphaGator

August 30th, 2010
8:42 am

Facts are facts. Obama inherited the worse economy since the Depression. He has to fight a do nothing Republican filibuster idiocy since he has been in there. The CBO has no reason to predict anything but conservative projections and if people would stop looking at domestic spending as the bane on our society when it is actually the trillions that are spent on useless wars (oh that Bush started) the actual culprit to all this is the imbalance on what we spend on the military and all their pensions and what is spent on domestic economic stimulii. Get a grip people and start thinking for yourself for a change!

paleo-neo-Carlinist

August 30th, 2010
8:47 am

eddy, put down the Kool-Aid. you are behaving like a politician. there is no “good” or “evil” in this. there is “success” and “failure” in governing – or, if you like; “sucess” for a politician does not equate “success” in the eyes of citizens. so how do the politicians keep getting relected? they set lines “we’re good, you’re evil”. heck, the neo-cons have even taken to speaking for liberals (”you think we’re evil…” “you think all corporations are evil…”). I hate to sound quasi-egalitarian; but you’re both (liberals and conservatives) part of the problem and you’re both part of the solution. were you a paleo-neo-Carlinist, you would understand ALL government is “evil” and all individuals are “good”. the battle is not between red states and blue states; or Karl Rove and Rahm Emmanuel; it is between the “haves” and the “have nots” – and I am not talking about $$$ – this is about political power. Americans think “democracy” (votes, etc.) give us “power” but we the People will remain impotent so long as we are “divided and conquered” by the beast that is special interests. true (paleo) conservatives and (paleo) liberals want the same thing; they want a “free market” and freedom to choose (as if there is a difference between regulating/deregulating banks and regulating/degegulating lifestyle). if a bank or business can be too big to fail (does not answer to the realities of the market), how is this different than public assistance for housing, food stamps, unemployment benefits, etc. (individuals not answering to the realities of the market)?

Jethro

August 30th, 2010
8:51 am

Typical opinion piece – highlight the problems, offer no solutions. I think, in a nutshell, America has outgrown today’s world. We’ve lost our manufacturing jobs and created an economy to the extent that manufacturing via manual labor is no longer economically feasible. The jobs of the future will require more and higher education, but if you read the reports, our schools ain’t cutting it. Labor and management are fighting over the best way to kill the goose instead of feeding the goose.

Leadership is stagnant from both sides of the aisle. We need some fresh ideas, and penny-ante criticism from Newsweek – and Glenn Beck, for that matter – only stirs the pot. It doesn’t change the recipe. Meanwhile, the average Joe hears only what’s wrong, not what anyone can do about.

American politics is dying. I wish it weren’t so. It’s not too late to change it. Until it becomes more profitable to create new ideas as opposed to milking the existing system of stagnant politics, so to will America stutter. It’s a shame, really. The dreamers have no voice.

Shawny

August 30th, 2010
8:52 am

What lib wrote that piece?

Alterman? Krugman?

Obviously biased.

Scout

August 30th, 2010
8:55 am

Cynthia:

This comes under the category of “tell a lie long enough and people will start to believe it.”

paleo-neo-Carlinist

August 30th, 2010
8:57 am

Jethro, well put.

LeeH1

August 30th, 2010
9:05 am

“Can the GOP actually create less jobs and more deficits than what we are seeing from the present Administration?”

Yes.

Republicans talk about cutting government spending all the time. But just try to get one of them to say what they will cut, and by how much. They are all talk and no action.

Any fool can lead people into an ambush. A good leader is the one who can lead them out. The Republicans have no leaders; only more fools.

Union

August 30th, 2010
9:06 am

i can see how some might believe this.. we have the worst economic numbers in years and you have the vice president out there talking about how well everything is working.. we tried it obamas way.. its not working..

Dave from GT

August 30th, 2010
9:11 am

No, not really. The Republicans will get Congress, but they still have Obama’s signature to contend with.

Sooo… even if GOP wins out in November, the best we get is stagnation.

Which is better than Pelosi and Reid !!!

Hoghead

August 30th, 2010
9:11 am

Hey conservatives can’t possibly do any worse than your community organizer is doing. Seems like the only pocket he is able to line is his own. And sure, keep on quoting the liberal rag line. Obama and Biden seem to be living through the Looking Glass, cause they sure aren’t telling it like it is.

byron

August 30th, 2010
9:13 am

The fact is Republicans simply don’t care about putting middle class Americans back to work. Why do they continue to insist that cutting taxes for the top 2% will create jobs? The only think that will create jobs right now is more government spending. Unless, of course, Americans corporations start to spend some of their record profits on hiring. Crazy notion, eh?
If you’re looking for work (and who isn’t?) I’ve been hearing great job search advice and discussions about unemployment issues on http://www.jobtalkamerica.com

AmVet

August 30th, 2010
9:18 am

Hey conservatives can’t possibly do any worse than your community organizer is doing.

2000 – 2008??? (The Reign of Error.)

Perhaps technically true, But it has been so long since a conservative has been seen in this country, that the premise is a non sequitur. (A literary device, often used for comedic purposes.)

Ivan

August 30th, 2010
9:19 am

“GOP would produce fewer jobs…”

Democrats would have to produce jobs first, before the GOP could produce fewer.

“…bigger deficit.”

Thank you, CT, for finally admitting the Democrats have done nothing but add to the deficit. You’re making progress.

Union

August 30th, 2010
9:24 am

is this the same CBO that said health care was gonna cost more than the obama administration said.. and we were told to dismiss cause they didnt know what they were talking about?

PearlJam

August 30th, 2010
9:32 am

Ive given up on focusing on the scares, focus is on restoring Honor, Faith, Hope, and Charity will bring back this country.

I'm Here From The Government And I'm Here To Help

August 30th, 2010
9:33 am

58% favor repeal of health care law… Most say it will raise cost of care…

WB, ctucker!

Peadawg

August 30th, 2010
9:38 am

“Republicans talk about cutting government spending all the time. But just try to get one of them to say what they will cut, and by how much. They are all talk and no action.”

Lee, what has Obama cut? What’s his plan to cut spending? Your sentence should probably say Politicians talk about cutting government spending all the time. But just try to get one of them to say what they will cut, and by how much. They are all talk and no action.

Tommy Maddox

August 30th, 2010
9:44 am

Hey Bubba Bob @ 8:21:

As for Glenn Beck’s event, some folks are pretending that Saturday did not happen. Carry on…

Bob

August 30th, 2010
9:46 am

Well Cynthia, it is owned by Jane Harmons husband, she is a dem leader. The Harmons are worth millions, why do greedy people like that need all that money, they could donate it to treasury, you know, put their money where their mouth is.