Mark Zandi, Moody’s Chief Economist, says that extending the payroll tax cut will add .5% to next year’s GDP, and extending Unemployment Insurance benefits will add .4%… I.e., almost one full percent of economic growth next year hinges on extending short-term programs… Somehow he knows these things…
So here’s how it goes: If the extensions are granted, and we grow by 3% next year, 1/3rd of that growth (and oodles of new jobs) will be the direct result of the wisdom of those who pushed through the extensions…
If, on the other hand, the extensions are not granted, and we grow by 3% next year, our economy will have been held back 1/3rd (and thousands will be left jobless) as a direct result of the actions of those who blocked the extensions…
Your bias will determine whether or not you buy it…
“Still a man hears what he wants to hear and disregards the rest, hmhmhmhmhmhmhm hmhmhmhm” Simon and Garfunkel