Crisis cost U.S. jobs
To the editor:
Government-by-crisis approach has cost the U.S. economy about 900,000 jobs and raised the unemployment rate by about 0.6 percent, according to a study by private forecasting firm Macroeconomic Advisers, commissioned by the Peterson Foundation.
Standard & Poor’s said the shutdown caused it to lower its estimate for GDP growth in the fourth quarter to close to 2 percent from 3 percent. The estimate represents a staggering cost to the economy of a completely self-inflicted political catastrophe.
Congressmen voted for the Bush tax cuts, the Iraq war, the war in Afghanistan, etc. and paid for none of it. Their unpaid bills left a deficit that reached $5.1 trillion in 2008.
Over the next two years, the deficit more than doubled due to the great recession. With so many people out of work, tax revenues dropped to the lowest share of the economy in over 60 years. “Sixty percent of the deficit right now is due to the lack of jobs in the economy,” says former Federal Reserve Vice Chairman Alan Blinder.