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WHO'S IN CHARGE HERE?
Magpie is a former journalist, attempted historian [No, you can't ask how her thesis is going], and full-time corvid of the lesbian persuasion. She keeps herself in birdseed by writing those bad computer manuals that you toss out without bothering to read them. She also blogs too much when she's not on deadline, both here and at Pacific Views.

Magpie roosts in Portland, Oregon, where she annoys her housemates (as well as her cats Medea, Whiskers, and Jane Doe) by attempting to play Irish music on the fiddle and concertina.

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Wednesday, February 1, 2006

Something Dubya forgot to mention ...

... in last night's State of the Union address:

All of the job growth in the last five years has come from government spending, not from the prez's much-ballyhooed tax cuts.

This table from the Economic Policy Institute tells the tale.



Jobs? What jobs?

[EPI graphic squished in to fit Magpie's column width]


Here's how the EPI's Lee Price explains where the last five years of job growth has occurred:

If tax cuts have created jobs at all since 2001, it will have happened in the private sector. Assuming that job growth in 2006 matches the Bush Administration's projections, the economy will have added about 2.0 million jobs to the private sector from FY2001 through FY2006. But how many of these two million jobs actually can be attributed to tax cuts and how many to increased government spending—particularly increased defense spending—in this period?

Based on Defense Department estimates of the number of private-sector jobs created by its own spending, we project that additional defense spending will account for a 1.495 million gain in private sector jobs between FY2001 and FY2006. Furthermore, increases in non-defense discretionary spending since 2001 will have added yet another 1.325 million jobs in the private sector, for a total of 2.82 million jobs created by increased government spending. Increased mandatory government spending—which is not even included in these estimates or the accompanying chart—would account for even more job creation. The mere fact that the projected job growth resulting from increased defense and other government spending exceeds the actual number of jobs projected to be added to the economy through 2006 clearly indicates that the tax cuts hardly seem plausible as the engine of the modest job growth in the economy since 2001.

To put it into simpler language: Dubya has done just what those 'tax-and-spend' liberals that he and the GOP hate so much always did when jobs were needed: He spent federal dollars to create 'em. Just like LBJ and FDR. Without that spending — especially the Iraq war spending — the US would be several million more jobs in the hole than it already is.

No wonder Dubya didn't want to talk about it last night, eh?

| | Posted by Magpie at 2:34 PM | Get permalink




Liar, liar, pants on fire!


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