President Obama's Weekly Address 9/3/16: Building Upon the Legacy of Labor Day

WASHINGTON, DC — In this week’s address, President Obama commemorated Labor Day by highlighting the economic progress we’ve made over the course of his administration. Over the past seven and a half years, we've rescued our economy from another depression, cut our unemployment rate in half, and unleashed the longest string total job growth on record. The President said that although the country has made significant progress, there’s still work to do in the years to come. He emphasized that despite the boisterous political season, we must not lose sight of the policies that will actually help working families get ahead. President Obama said if we are going to restore the sense that hard work is rewarded with a fair shot to get ahead, we must build on the legacy of those who came before us – that means exercising our right to speak up in the workplace, to join a union, and to vote.

President Obama's Weekly Address 6/20/15: Creating New Pathways of Opportunity for Americans Like You

WASHINGTON, DC — In this week's address, the President spoke to his priority of growing the economy and opening new avenues of opportunity for hardworking Americans. While the United States has already made economic progress, with more than 12 million new private sector jobs created over the past five years, there’s still more to be done. That’s why the President has continued to press for strong, high-standard trade agreements that are good for American workers and good for American businesses. And it’s why his Administration has partnered with mayors and governors across the country on issues such as minimum wage and paid leave that impact hardworking Americans. The President discussed impactful initiatives like these in his address before the Conference of Mayors on Friday.

President Obama's Weekly Address 2/28/15: Ensuring Hard-Working Americans Retire with Dignity

WASHINGTON, DC — In this week’s address, the President reiterated his commitment to middle-class economics, and to ensuring that all hard-working Americans get the secure and dignified retirement they deserve. While most financial advisers prioritize their clients’ futures, there are some who direct their clients towards bad investments in return for backdoor payments and hidden fees. That’s why earlier this week the President announced that he is calling on the Department of Labor to update rules to protect families from conflicts of interest by requiring financial advisers to put their clients’ best interest before their own profits. The President emphasized his promise to keep fighting for this policy and for others that benefit millions of working and middle class Americans.

President Obama's Weekly Address 2/7/15: Everyone Who Works Hard Should Get Ahead

President Obama highlights the progress our economy has made, with more than 3.1 million jobs created in 2014 – the best year for job growth since the late 1990s. America has come a long way, and with the right policies focused on middle-class economics, we can continue to grow our economy into one where those who work hard can get ahead.

President Obama's Weekly Address 1/10/15: America’s Resurgence Is Real

WASHINGTON, DC — In this week’s address, President Obama discussed the economic gains we made in 2014, which was the strongest year for job growth since the 1990s. In the coming weeks, the President will continue to preview his State of the Union Address and the agenda he’ll put forward to build on that progress. The President will showcase ways he’s working to help every American get ahead in the new year, like plans he announced this week to make community college free for two years, make mortgages more affordable and accessible for creditworthy families, and support manufacturing.

President Obama's Weekly Address 11/8/14: It’s Time to Help Women and Working Families

WASHINGTON, DC — In this week’s address, the President highlighted the progress our economy is making, and the commonsense policies that could make it even stronger by ensuring that everyone who works hard has the opportunity to get ahead, especially women and working families. This commitment has been a core part of the President’s Year of Action and a priority since the start of his administration, which is why he has put forth a range of policies that would help women and working families get ahead, from raising the minimum wage, to ensuring equal pay for equal work, to increasing access to high-quality child care and paid family leave. This week’s address follows remarks the President delivered on Friday at Rhode Island College, where he discussed the importance of harnessing our economy’s momentum by making policy choices that will help women and all working parents fully participate in and contribute to our economy.

President Obama's Weekly Address 10/4/14: We Do Better When the Middle Class Does Better

WASHINGTON, DC — In this week’s address, the President highlighted that six years after the Great Recession, thanks to the hard work of the American people and the President’s policies, our economy has come back further and faster than any other nation on Earth. With 10.3 million private sector jobs added over 55 straight months, America’s businesses have extended the longest streak of private-sector job gains on record. But even with this progress, too many Americans have yet to feel the benefits. The President reiterated the vision he set out earlier this week for steps that can lay a new foundation for stronger growth, rising wages, and expanded economic opportunity for middle class families.

President Obama's Weekly Address 9/6/14: Time to Give the Middle Class a Chance

WASHINGTON, DC —In this week’s address, the Vice President discusses our continued economic recovery, with 10 million private sector jobs created over the past 54 months. Yet even with this good news, too many Americans are still not seeing the effects of our recovery. As the Vice President explains, there’s more that can be done to continue to bolster our economy and ensure that middle class families benefit from the growth they helped create, including closing tax loopholes, expanding education opportunities, and raising the minimum wage.

President Obama's Weekly Address 5/3/14: The President's Year of Action

WASHINGTON, DC – In this week’s address, the President provided an update on the work his Administration has done to strengthen the economy and expand opportunity for hardworking Americans in this Year of Action. While Republicans in Congress are setting records in obstruction, the President is making progress for the American people and has taken more than 20 executive actions since January.

The President vowed to continue taking action on his own wherever possible, but underscored that much more progress could be made if Republicans in Congress were less interested in stacking the deck in favor of those at the top, and more interested in expanding opportunity for all.

President Obama's Weekly Address 11/16/13: Taking Control of America’s Energy Future

WASHINGTON, DC—In his weekly address, President Obama discussed progress in American energy and highlighted that we are now producing more oil at home than we buy from other countries for the first time in nearly two decades. We reached this milestone in part not only because we’re producing more energy, but because we’re wasting less energy, and as a result, we are also reducing our carbon emissions while growing the economy.

President Obama's Weekly Address 11/2/13: Passing a Budget that Reflects our Priorities

WASHINGTON, DC— In this week’s address, President Obama said that in order to keep growing the economy and creating good jobs, Washington must end its cycle of manufactured crises and self-inflicted wounds. It’s time for both parties to work together to pass a budget that reflects our priorities – making smart cuts in things we don’t need and closing wasteful tax loopholes, while investing in areas that create opportunities for the middle class and our future generations.

Buono Campaign: Christie Can't Hide His Failed Economic Record

For Immediate Release:

The Buono for Governor campaign released the following statement in response to the Christie campaign's latest ad:

"The Christie campaign's attempts to prop up his failed economic record ring hollow among the 400,000 people looking for work, the middle class families burdened by his 20 percent property tax increase and the students dealing with the devastating consequences of his $1 billion cut to education. 

"New Jerseyans are tired of his excuses and want a vision for a New Jersey that lifts up everyone rather than favoring millionaires and corporations."

- David Turner, a spokesman for the campaign

BACKGROUND

CHRISTIE'S NEW JERSEY COMEBACK NEVER HAPPENED

Star-Ledger Editorial: "Compared With The Rest Of The Country — Even The Rest Of Our Region — We Haven't Restored Nearly As Many Jobs Lost During The Start Of The Recession. Which Makes Gov. Chris Christie's Gloating Lately About The Jobs He's Created That Much More Insufferable." [Editorial, Star-Ledger, 4/7/13]

Asbury Park Press Editorial: "The Jersey Economic Comeback? Never Happened." [Editorial, Asbury Park Press, 8/19/13]

Bloomberg On Christie's Economic Record: "So Compared To The Country As A Whole, New Jersey Has Faltered Since Christie Took Office." [Bloomberg, 8/15/13]

CNBC: Christie Would Be "Unlikely To Point To New Jersey's Standing In Our America's Top States For Business Rankings. It Has Declined Since He Took Office In 2010" Falling From 30^th To 42^nd In 2013. "But he is unlikely to point to New Jersey's standing in our America's Top States for Business rankings. It has declined since he took office in 2010. That year and in 2011, New Jersey finished 30th overall. In 2012, the state plunged to 41st. For 2013, it drops another spot to 42nd." [CNBC, 7/13/13]

THE FACTS – HIGHEST UNEMPLOYMENT IN THE REGION, BOTTOM OF THE BARREL IN JOB CREATION, AND AT THE END OF THE DAY 400,000 NEW JERSEYANS ARE LOOKING FOR WORK

New Jersey's Unemployment Rate Of 8.5% Was The Highest Among Its Neighbors By Nearly Half A Point. In August 2013, New Jersey's seasonally adjusted unemployment rate was 8.5%. New York's was 7.6%, Pennsylvania's rate was 7.7%, Delaware's was 7.3%, Maryland's unemployment rates was 7.0% and Connecticut's was 8.1%. [BLS.gov, Accessed 9/20/13]

·     From January 2010 To August 2013, New Jersey's Unemployment Rate Dropped A Point, From 9.7% To 8.5%, While The National Unemployment Rate Dropped 2 Points, From 9.8% To 7.3%. [BLS.gov, Accessed 9/20/13]

August 2013: 391,667 New Jerseyans Are Out Of Work And Looking. [BLS.gov, Accessed 9/20/13]

August 2013: New Jersey Had Only Recovered 49% Of Jobs Lost During The Great Recession, While New York Recovered 126% And Pennsylvania 78%, And The Nation 78%. New Jersey's peak total non-farm seasonally adjusted employment came in January 2008, at 4,092,200. The low point came in September 2010 at 3,969,800 and August 2013, New Jersey stood at 3,958,700. New Jersey had only regained 49% of jobs lost. New York regained 126%, Pennsylvania 78% and nationally 78%. [BLS.gov, Accessed 9/20/13]

August 2013: New Jersey Ranked 44^th In Job Creation Under Christie, And Lagged Behind New York (23^th), Delaware (39th), Connecticut (38th), Maryland (24th) And Pennsylvania (42nd).  New Jersey's total non-farm employment grew from 3,805,700 to 3,958,700 from January 2010 to August 2013. The numbers were seasonally adjusted. New Jersey's growth rate was 2.81%, lower than Pennsylvania at 3.40%, Connecticut at 3.80%, Delaware at 3.79%, Maryland was 4.70% and New York at 4.77%.  [BLS.gov, Accessed 9/20/13]

New Jersey Poverty Rate Reached A 52-Year High In 2011. Poverty in New Jersey continued to grow even as the national recession lifted, reaching a 52-year high in 2011, according to a report released today. The annual survey by Legal Services of New Jersey found 24.7 percent of the state's population — 2.1 million residents — was considered poor in 2011. That's a jump of more than 80,000 people — nearly 1 percent higher than the previous year and 3.8 percent more than pre-recession levels…. The report — the seventh issued by Legal Services — defines being poor in New Jersey as a family of three making less than $37,060. That's twice the federal poverty rate because New Jersey's cost of living is among the highest in the nation." [Star-Ledger, 9/8/13]

2009 CANDIDATE CHRISTIE WOULD HAVE RUN AGAINST 2013 GOVERNOR CHRISTIE'S RECORD

2009 Christie: New Jersey Suffered From The Highest Unemployment Rate In 33 Years, The Highest Tax Burden, The Highest Property Taxes, Going Up $1k On Average, And Needed A New Governor. "9.7% unemployment, the highest in New Jersey in 33 years, and the worst in the region. The highest tax burden in America on each and every New Jersey citizen. The highest property taxes in America, going up as much as $1,000 on average per household in the last four years. 200,000 jobs now nearly lost, nearly 200,000 just this year. New Jersey is in crisis, we are in crisis because we're taxed too much. Because we spend too much, and because we borrow too much. But you know, hope can be real again in New Jersey if we have a Governor that will come in and make the tough choices to cut spending. Hope can be real again if we cut income taxes across the board and cut business taxes." [Christie, New Jersey Gubernatorial Debate, 10/1/09 (video available)]

2009: Christie Pointed Out New Jersey's Unemployment Rate Was "At Least 0.7 Of A Percentage Point Or Higher Than New York, Pennsylvania, Delaware And Connecticut." "Christie calls Corzine's policies a "failure," and points to the unemployment rate as proof. He noted that in August, New Jersey's unemployment rate was at least 0.7 of a percentage point or higher than New York, Pennsylvania, Delaware and Connecticut." [Herald News, 10/18/09]

2009: Christie Criticized Corzine For Running Attack Ads While The State Was "Facing The Worst Unemployment Rate In The Region." "Calling Tuesday accountability day, Christie criticized Corzine for spending $25 million on negative, attack ads at a time when the state has the highest property taxes in the nation and is facing the worst unemployment rate in the region. Christie said Corzine represents higher taxes, more spending and more government programs." [Eastern Express Times, 10/31/09]

CHRISTIE'S CLAIMS TO CONTROLLING PROPERTY TAXES OMITS HIS CUTS TO PROPERTY TAX RELIEF THAT RESULTED IN 20% HIGHER TAXES FOR THE AVERAGE NEW JERSEY RESIDENT

Philadelphia Inquirer: Christie's First Ad Touted "No New Taxes For Anyone" But Christie "Christie Cut Into Tax Credit Programs, Which Effectively Raised Taxes On Some." "Viewers will see the phrase 'no new taxes for anyone.' But, to balance budgets, Christie cut into tax credit programs, which effectively raised taxes on some." [Philadelphia Inquirer, 5/2/13]

Gloucester County Times Editorial: "Christie's Flat Out Wrong When He Tells You That He's Not Raising People's Taxes" And He Should Be "Taken To Task If The Full Rebate Cuts Stick And He Tries To Keep Wearing That 'I Didn't Raise Taxes' Halo." "Though we're with him on most of the cuts, Christie's flat out wrong when he tells you that he's not raising people's taxes. Even if municipalities and school districts don't raise property taxes by a single penny, the planned suspension of state-funded rebates until at least April 2011 blows a hole in the wallets of middle-class households and senior citizens…But when Christie wants to effectively take $800 to $1,200 in rebates from so many households, with no guarantee that the funding will return, he has no right to say 'we are certainly not increasing the tax burden we place upon our people ... .' That's simply not true. Christie should be taken to task if the full rebate cuts stick and he tries to keep wearing that 'I didn't raise taxes' halo." [Editorial, Gloucester County Times, 3/17/2010]

5/13/13: Columnist Moran Headline: "Christie Fires Blanks At Study On Rising Property Taxes." [Columnist Tom Moran, Star-Ledger, 5/13/13]

Columnist Tom Moran: Christie, "Faced With A Compelling Study Showing That The Property Tax Burden On Average Homeowners" Rose Nearly 20 Percent "Gov. Chris Christie Lashed At The Author Of The Study While Failing Utterly To Refute The Findings." "There he goes again. Faced with a compelling study showing that the property tax burden on average homeowners in New Jersey has risen by 18 percent since he took office, Gov. Chris Christie lashed at the author of the study while failing utterly to refute the findings. The report on NJ Spotlight, written by Mark Magyar, considered the impact of the governor's decision to reduce rebate payments by billions of dollars. The governor promised during the campaign that he would restore the rebates, but once in office, did exactly the opposite. So even though property taxes are rising more slowly, the burden has grown because the rebates have been scaled back so sharply." [Columnist Tom Moran, Star-Ledger, 5/13/13]

Christie's Record Property Taxes Rose 18.6 Percent In His First Three Years, Compared To Just 6 Percent In Corzine's Last Three Years. "Net property taxes in New Jersey rose 18.6 percent in Gov. Chris Christie's first three years in office, compared to just 6 percent in Democratic Gov. Jon Corzine's last three years in office, a New Jersey Spotlight analysis shows.." [NJ Spotlight, 5/6/13]

·     5/12/13: Star-Ledger Editorial Headline: "Christie's Bogus Spin On Property Taxes." [Editorial, Star-Ledger, 5/12/13]

CHRISTIE CUT NEARLY $1 BILLION FROM PUBLIC SCHOOLS, THE LARGEST PER PUPIL SPENDING CUT IN THE NATION – WHICH NJ SCHOOLS STILL HAVE NOT RECOVERED FROM

Christie's $820 Million In Education Budget Resulted In 81 Percent Of Districts Planning On Cutting Staff, And Of Those 42 Percent Saying They Expected Class Size To Rise As A Result. "The school's dilemma marks a statewide trend as districts say aid cuts have meant staff reductions that in turn have led to larger class sizes. A survey by the New Jersey School Boards Association last summer, conducted after Gov. Chris Christie slashed school aid by $820 million, found 81 percent of responding districts said they intended to reduce teaching staff. Of those, 42 percent expected class size to rise as a result. … With a 2 percent cap on property tax increases coming next year, class size may increase further, West Orange School Superintendent Anthony Cavanna said."  [Star Ledger, 11/28/10]

·     Christie's FY11 Education Cuts Were The "Largest Yearly Decline Of Any State" Of Public Per Pupil Spending. "Per pupil spending for public elementary and secondary education fell in fiscal year 2011 – the first ever recorded annual decline, according to Census Bureau data released today. In all, the 50 states and the District of Columbia spent $10,560 per student, with more than three-quarters funding salaries and employee benefits. The decline represents only a 0.4 percent reduction from 2010, but it's the first year-over-year decrease since the federal government began recording data in 1977. Public spending fell by $873 per pupil in New Jersey, the largest yearly decline of any state, followed by Illinois (-$860) and Maine (-$820). A total of 21 states reported spending drops from 2010." [Governing.com, 5/21/13]

NJ Spotlight: Schools "Actually Received More In Overall Aid" In Fiscal Year 2010, And Now "Districts Are Getting Close To Returning To Those 2010 Totals Under Christie's Latest Budget, But The Financial Wounds Were Deep" And "Few Would Say They Have Healed." "It's not easy to tell whether this is the most generous education budget in history or one of the most egregious, given the rhetoric coming from both sides in the debate. Actually there is a bit of truth in each. The governor is in full reelection mode, pitching the state's investment in school aid as the highest ever. And strictly by the numbers, the amount is indeed the most the state has directly paid. But that's hardly the full picture. In fiscal 2010, schools actually received more in overall aid, helped by an additional $1 billion in federal stimulus money. The year after, without that help, Christie made deep aid cuts to schools, leading to unprecedented layoffs and decimated programs. Three years later, districts are getting close to returning to those 2010 totals under Christie's latest budget, but the financial wounds were deep and with a 2 percent tax cap in place since then, few would say they have healed." [NJ Spotlight, 4/09/13]

The FY14 Budget Would Leave 477 Schools, Or Just Over 80% Of Schools With Less State Aid Then They Received The Year Before Governor Christie Took Office. "The vast majority of NJ school districts have yet to recover from Governor Christie's $1.1 billion cut in state aid in his FY11 budget.  A new analysis by ELC shows that, even with the Governor's slight aid increase proposed for the FY14 State Budget, 477 districts will remain below the level of state aid they received the year before the Governor took office. In the 2010-11 school year, Governor Christie cut state aid to districts in an amount equal to 5% of their total operating budgets." The New Jersey Department of Education said there were 590 school districts in New Jersey. [Education Law Center, 4/4/13; New Jersey DOE, Accessed 9/2/13]

CHRISTIE'S CLAIMED HE BALANCED FOUR BUDGETS, WHICH WAS CONSTITUTIONALLY REQUIRED

PolitiFact: "New Jersey's Constitution Requires A Balanced Budget Every Year." [PolitiFact, 8/28/12]

Wall Street Journal Political Diary: "For Instance, Mr. Christie's First Large Ad Buy Touts The Four Balanced Budgets He's Signed, As If The State Constitution Didn't Require A Balanced Budget…" [Political Diary, Wall Street Journal, 5/7/13]

PolitickerNJ: Christie Claimed Four Balanced Budgets During His Term But "By Law The State's Budget Must Be Balanced, So Christie Has Not Had A Choice." "The release also links to articles refuting the governor's claims that he has presented four balanced budgets during his term.  By law the state's budget must be balanced, so Christie has not had a choice." [PolitickerNJ, 5/1/13]

Buono Campaign Releases Statement on Christie's New Television Ad Then Follows-up With Own Ad

New Brunswick, NJ - Buono for Governor Communications Director David Turner issued the following statement in response to Governor Christie's new television ad, which goes to desperate lengths to distract voters from his failed economic record:

"In less than a week, Governor Christie has decided to forgo talking about his terrible economic record that has raised property taxes by 20 percent and left 400,000 people looking for work.

"With nothing positive to talk about, he has resorted to attacking legislation that one of his biggest supporters sponsored, and a Governor from his own party signed.

"His attempts to distract from being an abject failure on job creation and taxes are what made a columnist from the state's biggest newspaper call him America's most overrated governor."

To further set the record straight on Governor Christie’s new television advertisement, the Buono campaign released a new web video of today, “Seeing,” The web video underscores the obvious: Christie’s false rhetoric is no match for the facts. While the Governor promised record job growth, New Jersey's job creation rate is one of the worst in the nation and poverty in the Garden State is currently at a 52 year high. Despite his pledge to reduce property tax rates, average property tax rates have increased by 20 percent over the past three years. And instead of fully funding local schools, Governor Christie has cut nearly $1 billion, leaving schools devoid of necessary resources.

As Governor Christie sets his sights on national office, there is another New Jersey that has been left behind and cannot afford four more years of his failed economic policies and misplaced priorities.

President Obama's Weekly Address 8/3/13: Securing a Better Bargain for the Middle Class

WASHINGTON, DC— In this week’s address, President Obama told the American people that his plan for creating a better bargain for the middle class builds on the progress we’ve made, fighting our way back from the worst economic recession of our lifetimes. The President underscored the need for Congress to end the logjam in Washington and act on his plan that strengthens the cornerstones of what it means to be middle class in America: a good job, a home that is your own, affordable health care, and a secure retirement.

President Obama's Weekly Address 2/9/13: Averting the Sequester and Finding a Balanced Approach to Deficit Reduction

President Obama urges Congress to act to avoid a series of harmful and automatic cuts—called a sequester—from going into effect that would hurt our economy and the middle class and threaten thousands of American jobs. The President urges Congress to find a balanced approach to deficit reduction that makes investments in areas that help us grow and cuts what we don’t need.

President Obama's Weekly Address 2/2/13: A Balanced Approach to Growing the Economy in 2013

WASHINGTON, DC— In this week’s address, President Obama called on Congress to work together on a balanced approach to reduce our deficit and promote economic growth and job creation. Our businesses created 2.2 million jobs last year, and we just learned that our economy created more jobs over the last few months than economists originally thought. Our economy is poised to expand in 2013 if Washington politics doesn’t get in the way, and the President called on Congress to work together to keep moving us forward.

President Obama's Weekly Address 10/1/11: Democrats and Republicans Should Get Together and Pass the American Jobs Act

WASHINGTON—In this week’s address, President Obama told the American people that it has been nearly three weeks since he sent Congress his jobs bill, and now it is time for Congress to send it back so that it can be signed into law. Economists agree that the American Jobs Act will spur hiring and boost the economy, and it will give workers and small businesses tax cuts, get construction workers back to work rebuilding our roads and bridges, and put more teachers in classrooms and cops on the streets. Too many Americans are struggling and need help now, and so Republicans and Democrats should come together without delay to pass the American Jobs Act.

Cut And Grow Fail: CBO Schools Tea Party Freshman In Basic Economics

This little ditty was posted Friday on Talking Points Memo. It should be a wake-up call to all those TEA partiers and other right-wingers out there that think that all will be fine in the world if we only cut spending and do nothing to increase revenue.

Unfortunately though, regardless of economic schooling provided by the CBO, there will those that continue to burry their heads in the sand and refuse to believe anything a socialist government agency has to say:

Rep. Tim Huelskamp (R-KS), a Tea Party-backed freshman who voted against the final debt limit bill, recently asked to hear from the Congressional Budget Office about the impact of government spending on economic growth. It's an article of faith on the right that vastly shrinking government will unleash the forces of private enterprise, and faced with CBO's opposing view, Huelskamp wanted to know the answer to two questions:

1). What current federal departments, agencies, programs, or portions thereof do not contribute to economic growth?

2). In the programs that CBO believes do contribute to economic growth, what level of spending cuts would amount to a level you believe would be significant enough to "probably slow the economic recovery"?

But if the newly elected member of the Budget Committee was hoping the non-partisan CBO would buy into his premise, he'll be sorely disappointed.

In a response letter Thursday, CBO-chief Doug Elmendorf gives Huelskamp a layman's lesson in Keynesian economics: Under current economic circumstances, new federal spending would help economic growth, and current and future cuts could stymie it, particularly if they hit key government investment.

"When demand for goods and services falls short of the economy's ability to produce them, as is the case currently, increasing government spending can increase aggregate demand and thereby narrow the gap between the economy's actual and potential levels of output," Elmendorf writes.

The precise details matter. The more robust the economy, the lower the impact. But, according to Elmendorf, "when the Federal Reserve's ability to lower short-run interest rates is constrained because those rates are already near zero, as they are currently, the short-run effects of changes in government spending on output tend to be larger than usual."

To illustrate the point, Elmendorf notes that deficit reduction measures that cut spending by $100 billion next fiscal year, and hundreds of billions more over the coming decade "would decrease real (inflation-adjusted) gross national product (GNP) in 2012, 2013, and 2014 by amounts ranging from roughly 0.1 percent to 0.6 percent depending on the year and the assumptions used." In other words, the GOP's current governing theory is damaging the economy and, by implication, costing jobs. And for those Republicans who want to cut more, " a reduction in primary deficits that followed the same gradual time path but was twice as large would produce macroeconomic effects that were roughly twice as large."


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There are important growth-related reasons to reduce deficits if and when the economy improves -- it reduces the extent to which government spending "crowds out" private investment, by undertaking functions the private sector can do more efficiently. But we're not there yet and, according to CBO, won't be until the end of the decade. Spending cuts like the ones describe above, "[a]t the turn of the decade, from 2019 through 2021...would increase [GNP] by roughly 0.5 percent to 1.4 percent."

But again the specifics matter, and if the GOP wants to slash across the board, they'll do damage anyhow.

"Some types of spending, such as funding for improvements to roads and highways, may add to the economy's potential output in much the same way that private capital investment does," Elmendorf writes. "Other policies, such as funding for grants to increase access to college education may raise long-term productivity by enhancing people's skills. The positive longer-term impact of deficit reduction on GNP would be smaller if the policies that reduced deficits included cuts in productive government investments."

Huelskamp's original letter is here. Read Elmendorf's response here.

The letters stem from the below exchange between Huelskamp and Elmendorf at a recent Budget committee hearing. Elmendorf and Huelskamp are arguing two different points. Huelskamp would like to see big cuts to federal safety net programs and other spending. Elmendorf argues that while the macroeconomic consequences of slashing some of those programs might be minimal in the long run, the near-term impact would be significant, given the current downturn.

President Obama's Weekly Address 6/11/11: Partnering with the Private Sector to Spur Hiring

WASHINGTON – In his weekly address, President Obama spoke to the American people about how the government is partnering with the private sector to make sure workers have the skills and training they need in this economy. This past Wednesday, he announced commitments by the private sector, colleges, and the National Association of Manufacturers that will make it possible for half a million community college students to get a manufacturing credential that has the industry’s stamp of approval. And on Monday, he will travel to North Carolina to meet with his Jobs Council to work on the steps the government can take to spur private sector hiring in the short-term and ensure our workers have the skills and training they need.

President Obama's Weekly Address 1/22/11: "We Can Out-Compete Any Other Nation"

WASHINGTON – President Obama used his weekly address to highlight the steps his administration is taking to make America more competitive. As a result of the deals made with China this week, U.S. exports to China will increase by more than $45 billion and China will increase its investments in America by several billion dollars. These deals will support some 235,000 American jobs. Also, the President named GE CEO Jeff Immelt to head up the new Council on Jobs and Competitiveness, which will help find ways to grow the economy by investing in American businesses.