Bush Tax Cuts Fail To Create Jobs
The Economic Policy Institure has realeased data showing that the Bush tax cuts have failed to create jobs as promised. From their report:
Job growth stalls in last two months, underlining failure of tax cuts as job creation strategy
"Job growth has stalled in the last two months. Payroll jobs increased by only 78,000 in June and a meager 32,000 in July, after rising 295,000 a month the previous three months. The Bush Administration called the tax cut package, which was passed in May 2003 and took effect in July 2003, its "Jobs and Growth Plan." The president's economics staff, the Council of Economic Advisers , projected that the plan would result in the creation of 5.5 million jobs by the end of 2004—306,000 new jobs each month starting in July 2003. The CEA projected that the economy would generate 228,000 jobs a month without a tax cut and 306,000 jobs a month with the tax cut. Thus, it projected that 3,978,000 jobs would be created over the last 13 months. In reality, since the tax cuts took effect, there are 2,565,000 fewer jobs than the administration projected would be created by enactment of its tax cuts.."
Pay suffers as displaced worker rate climbs to highest on record
"The latest survey also found that almost two-thirds of displaced workers had taken another job at lower pay (30%) or remained jobless (35%). "
Greatest sustained job loss since the Great Depression
"Since the recession began 40 months ago in March 2001, 1.2 million jobs have disappeared, representing a 0.9% contraction. To put this performance in historical perspective, the Bureau of Labor Statistics began collecting monthly jobs data in 1939 (at the end of the Great Depression). In every previous episode of recession and job decline since 1939, the number of jobs had fully recovered to above the pre-recession peak within 31 months of the start of the recession. Today's labor market would have 6.2 million more jobs if employment had grown by the same 3.7% average that characterized the last three recession cycles."
Job growth stalls in last two months, underlining failure of tax cuts as job creation strategy
"Job growth has stalled in the last two months. Payroll jobs increased by only 78,000 in June and a meager 32,000 in July, after rising 295,000 a month the previous three months. The Bush Administration called the tax cut package, which was passed in May 2003 and took effect in July 2003, its "Jobs and Growth Plan." The president's economics staff, the Council of Economic Advisers , projected that the plan would result in the creation of 5.5 million jobs by the end of 2004—306,000 new jobs each month starting in July 2003. The CEA projected that the economy would generate 228,000 jobs a month without a tax cut and 306,000 jobs a month with the tax cut. Thus, it projected that 3,978,000 jobs would be created over the last 13 months. In reality, since the tax cuts took effect, there are 2,565,000 fewer jobs than the administration projected would be created by enactment of its tax cuts.."
Pay suffers as displaced worker rate climbs to highest on record
"The latest survey also found that almost two-thirds of displaced workers had taken another job at lower pay (30%) or remained jobless (35%). "
Greatest sustained job loss since the Great Depression
"Since the recession began 40 months ago in March 2001, 1.2 million jobs have disappeared, representing a 0.9% contraction. To put this performance in historical perspective, the Bureau of Labor Statistics began collecting monthly jobs data in 1939 (at the end of the Great Depression). In every previous episode of recession and job decline since 1939, the number of jobs had fully recovered to above the pre-recession peak within 31 months of the start of the recession. Today's labor market would have 6.2 million more jobs if employment had grown by the same 3.7% average that characterized the last three recession cycles."
posted by Ron Chusid at 1:45 PM
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