Monday, September 12, 2011

Total Cost of Obama's Jobs Plan Likely to Reach $1.5 TRILLION

Obama's plan would increase the Federal budget deficit an additional $447 Billion annually.
If the Treasury simply sent every American a check for $1 Billion, we'd have the same result we're heading towards, but we could get it over with already.

The White House says President Obama’s new program of tax cuts and spending increases — a.k.a. stimulus — will cost $447 billion. Well, not exactly, says a leading economist. The actual cost would probably range between $1 trillion and $1.5 trillion over a decade. If he’s correct, the addition to the federal debt would be much higher than advertised.

This message is from Michael Mussa, a former chief economist at the International Monetary Fund who’s now at the Peterson Institute for International Economics.
Here’s his reasoning. Yes, the cost is $447 billion in 2012. But what happens after 2012? “We get to 2013: Do we raise the payroll tax back up? Do we stop extended unemployment benefits? . . . That does not make any sense,” says Mussa. The economy and jobs aren’t likely to be growing so rapidly to justify ending the full program cold turkey.
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