“Failed” Recovery Act Created Millions Of Jobs, Boosted GDP, And Cut Taxes

Recovery Act “Succeeded In…Protecting The Economy During The Worst Of The Recession.” From the Center on Budget and Policy Priorities: “A new Congressional Budget Office (CBO) report estimates that the American Recovery and Reinvestment Act (ARRA) increased the number of people employed by between 200,000 and 1.5 million jobs in March. In other words, between 200,000 and 1.5 million people employed in March owed their jobs to the Recovery Act. […] ARRA succeeded in its primary goal of protecting the economy during the worst of the recession. The CBO report finds that ARRA’s impact on jobs peaked in the third quarter of 2010, when up to 3.6 million people owed their jobs to the Recovery Act. Since then, the Act’s job impact has gradually declined as the economy recovers and certain provisions expire.” [CBPP.org, 5/29/12]

At Its Peak, Recovery Act Was Responsible For Up To 3.6 Million Jobs. According to the nonpartisan Congressional Budget Office:

CBO estimates that ARRAs [sic] policies had the following effects in the third quarter of calendar year 2010:

• They raised real (inflation-adjusted) gross domestic product by between 1.4 percent and 4.1 percent,
• Lowered the unemployment rate by between 0.8 percentage points and 2.0 percentage points,
• Increased the number of people employed by between 1.4 million and 3.6 million, and
• Increased the number of full-time-equivalent (FTE) jobs by 2.0 million to 5.2 million compared with what would have occurred otherwise. (Increases in FTE jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in the number of employed workers). [CBO.gov, 11/24/10]

Recovery Act Included $288 Billion In Tax Cuts. From PolitiFact: “Nearly a third of the cost of the stimulus, $288 billion, comes via tax breaks to individuals and businesses. The tax cuts include a refundable credit of up to $400 per individual and $800 for married couples; a temporary increase of the earned income tax credit for disadvantaged families; and an extension of a program that allows businesses to recover the costs of capital expenditures faster than usual. The tax cuts aren’t so much spending as money the government won’t get — so it can stay in the economy.” [PolitiFact.com, 2/17/10]

Bush’s Bank Bailout Was Bipartisan

Rescue Efforts Helped Avert “Great Depression 2.0.” From Bloomberg: “The U.S. response to the financial crisis probably prevented a depression, slowed a decline in gross domestic product and saved about 8.5 million jobs, economists Alan Blinder and Mark Zandi said. Policies including the government fiscal stimulus, bailouts of financial companies, bank stress tests and the Federal Reserve’s purchase of mortgage-backed securities to lower interest rates ‘probably averted what could have been called Great Depression 2.0,’ Blinder and Zandi said in a report dated yesterday. Without those measures, the U.S. would have deflation, they said.” [Bloomberg, 7/28/10]

On National Television, “President Bush Strongly Urged Lawmakers To Pass His Administration’s $700 Billion Bailout For The Financial Markets” In 2008. As reported by MarketWatch: “President Bush strongly urged lawmakers to pass his administration’s $700 billion bailout for the financial markets on Wednesday, spelling out dire risks to the U.S. economy if Congress doesn’t act quickly. ‘We’re in the midst of a serious financial crisis,’ Bush said in a nationally televised address. ‘Our entire economy is in danger,’ as a result of the credit crunch, he said, and inaction on the plan could result in a ‘long and painful recession.’” [MarketWatch.com, 9/24/08]

• Congress Passed The Bailout With Significant Bipartisan Support. According to the New York Times: “The Senate approved the bailout measure on Oct. 1, 2008, on a bipartisan vote of 74 to 25. The House initially rejected the proposal, but under prodding from the White House and leading members of both parties, House members ultimately voted 263 to 171 for the bill, with 91 Republicans joining 172 Democrats in backing it; 108 Republicans and 63 Democrats voted no.” [New York Times, 7/11/10]

The Auto Bailout Worked

Under Obama, The Automotive Industry Has Gained “More Than 100,000” Jobs. According to the Washington Post’s Glenn Kessler: “The BLS data show that much of the decline in auto industry employment took place in 2008, before Obama became president. Just in 2008, some 254,000 jobs disappeared in vehicle and vehicle parts manufacturing and 211,000 at vehicle dealerships. The numbers are equally grim if you just look at auto manufacturing and dealerships. But since January 2009, when Obama took office, overall there has been an increase in jobs. The number of jobs hit a low point in November 2009, but then it has slowly inched upward so that Obama can point to the auto industry and says there has been a net gain. In vehicle and vehicle parts manufacturing, the total number of jobs has increased by 73,000. For dealers, the gain has been nearly 30,000. So, all told, that’s more than 100,000.” [WashingtonPost.com, 5/18/12]

• Michigan Gained Jobs In 2011 For The First Time In A Decade. From Bloomberg: “Last year, Michigan gained 66,000 net jobs, the first increase since the turn of the century, according to a Jan. 13 state report. The University of Michigan’s Research Seminar in Quantitative Economics predicts a net rise of 101,300 by 2015.” [Bloomberg, 2/17/12]

Auto Bailout Saved 1.4 Million American Jobs In 2009-2010. From the Wall Street Journal: “The Center for Automotive Research said today the government’s bailouts of the U.S. auto industry spared more than 1.14 million jobs last year alone, and prevented ‘additional personal income losses’ of nearly $97 billion combined for this year and last. Another 314,400 jobs were saved this year thanks to the $80 billion in taxpayer lifelines extended to GM, Chrysler, and the GMAC and Chrysler Financial financing businesses, CAR said. The research organization based its conclusions on the potential impact of auto-industry collapse for jobs at U.S. auto makers and suppliers, and cascading effects on the economy at large.” [Wall Street Journal, 11/17/10]

GM Has Returned To Being The Global Leader In Car Sales. From CNNMoney: “General Motors is once again No. 1 in global auto sales, after three years out of the top spot. It’s a comeback that became official Thursday when it reported final 2011 sales figures of 9 million vehicles, its best sales total since 2007.” [CNNMoney, 1/19/12]

American Clean Energy And Security Act Would Have Boosted The Economy At Minimal Cost To Consumers

The claim that cap-and-trade would “cost Kentucky 35,000 jobs” comes from a study of the Waxman-Markey bill, also called the American Clean Energy and Security Act, by the National Association of Manufacturers and the American Council for Capital Formation.

Reuters: Experts Say House-Passed Clean Energy Bill Would Have “Only A Modest Impact On Consumers.” According to Reuters: “A new U.S. government study on Tuesday adds to a growing list of experts concluding that climate legislation moving through Congress would have only a modest impact on consumers, adding around $100 to household costs in 2020. Under the climate legislation passed by the House of Representatives in June, electricity, heating oil and other bills for average families will rise $134 in 2020 and $339 in 2030, according to the Energy Information Administration, the country’s top energy forecaster. The EIA estimate was in line with earlier projections from the nonpartisan Congressional Budget Office which said average families would pay about $175 extra annually by 2020, and the Environmental Protection Agency, which said families would pay at most an extra $1 per day.” [Reuters, 8/5/09]

• CBO: Energy Costs Would Actually Decrease For Low-Income Households. According to the Congressional Budget Office’s analysis of the American Clean Energy and Security Act, if the bill were implemented, “households in the lowest income quintile would see an average net benefit of about $40 in 2020, while households in the highest income quintile would see a net cost of $245.” [CBO.gov, 6/19/09]

Study: Clean Energy Legislation Would Create Jobs, Boost GDP. According to an analysis by the University of California, Berkley: “Comprehensive clean energy and climate protection legislation, like the American Clean Energy and Security Act (ACES) that was passed by the House of Representatives in June, would strengthen the U.S. economy by establishing pollution limits and incentives that together will drive large-scale investments in clean energy and energy efficiency. These investments will result in stronger job growth, higher real household income, and increased economic output than the U.S. would experience without the bill. New analysis by the University of California shows conclusively that climate policy will strengthen the U.S. economy as a whole. Full adoption of the ACES package of pollution reduction and energy efficiency measures would create between 918,000 and 1.9 million new jobs, increase annual household income by $487-$1,175 per year, and boost GDP by $39 billion-$111 billion. These economic gains are over and above the growth the U.S. would see in the absence of such a bill.” [University of California, Berkeley, accessed 5/14/12]

Chandler Voted With GOP To Keep Estate Tax Limited

Estate Tax Only Applies To Estates Over $5 Million. From CNNMoney: “This year, estates under $5 million are exempt from the tax. Amounts above that are taxed up to a top rate of 35%. Next year, barring congressional action, the exemption level falls to $1 million, and the top rate jumps to 55%. There will also be 5% surtax on a portion of very large taxable estates.” [Money.CNN.com, 6/1/12]

Less Than 0.2 Percent Of Estates Subject To Estate Tax. From CNNMoney: “This year, under the $5 million exemption level, less than 0.2% of those who die — or 3,600 estates — are likely to be affected by the estate tax, according to estimates from the independent Tax Policy Center.” [Money.CNN.com, 6/1/12]

Even Estate Tax Applied To All Estates Over $1 Million, Only 2 Percent Would Face Tax. From CNNMoney: “In 2013, if the exemption level falls to $1 million, the Center estimates that just 2% of folks who die that year — or 53,000 estates — would be subject to the estate tax. Combined, the tax on those estates could raise more than $40 billion.” [Money.CNN.com, 6/1/12]

Tax Policy Center Estimated Fewer Than 50 Small Farms Or Businesses In The Whole Country Would Pay Estate Tax In 2011. From the Tax Policy Center: “The top ten percent of income earners pays virtually all of the tax; over half is paid by the richest 1 in 1,000. Much of the political debate about the estate tax centers around its impact on family farms and small businesses. In fact, very few farms or businesses actually pay the tax. […] Less than 50 small farms and businesses – estates with farm and business assets making up at least half of gross estate and totaling $5 million or less – will pay any estate tax in 2011. Such estates will represent just 1.2 percent of all taxable estate tax returns.” [TaxPolicyCenter.org, accessed 9/20/12]

In August 2012, Chandler Voted With GOP To Keep Estate Tax At Current Higher Level. From Montana NBC affiliate KULR8: “The Republican-led House of Representatives voted in favor of expanding the Bush-era tax cuts for all income levels. The Job Protection and Recession Prevention Act was passed in the House Wednesday night and would extend the tax cuts through 2013. It’s the House’s response to a Senate version that would let the tax cuts expire for those making more than $250,000 a year, while keeping tax relief in place for middle class and low income families. The House version would also keep estate taxes from rising.” Chandler voted in favor of the Job Protection and Recession Prevention Act. [KULr8.com, 8/2/12; H.R. 8, Vote #545, 8/1/12]