While Republicans continue to obstruct Democrat efforts to create jobs and rebuild our economy, the truth is coming out on how much of a difference our leadership has made in our economic recovery. This week, economists Mark Zandi (Princeton University) and Alan Blinder (Moody's Analytics) released the first comprehensive study titled, "How the Great Recession Was Brought to an End," that estimates the total effect of fiscal and financial policies of the last few years.
The New York Times summed it up in "In Study, 2 Economists Say Intervention Helped Avert a 2nd Depression" -- according to Mark and Blinder, there would be about 8.5 million fewer jobs, on top of the more than 8 million already lost without government response. The economists found the economy would be experiencing deflation, with the nation’s gross domestic product would be about 6.5 percent lower this year. In their own words, "When all is said and done, the financial and fiscal policies will have cost taxpayers a substantial sum, but not nearly as much as most had feared and not nearly as much as if policy makers had not acted at all.”
The economy is slowly, but surely, on its way to recovery. In New York City alone:
- Private sector jobs rose by 5,000 in May 2010 after an increase of 15,300 in April 2010.
- In the same period, government jobs rose by 17,800 for a total increase of 22,800 private and public sector jobs.
- Since May 2009, private sector employment has risen by 1,300 jobs or 0.04 percent.
- In May 2010, the City’s unemployment rate fell to 9.6 percent from 9.8 percent in April.
- Between April and May 2010, the number of employed residents rose by 17,000 and the number of unemployed residents fell by 4,700. [NYCEDC, July 2010 Economic Snapshot]
As shown above, the private sector is expanding. It added almost 600,000 jobs in the first six months of 2010 compared to regular losses of more than 700,000 jobs per month in early 2009 at the height of the recession. But the U.S. trade deficit is increasing again because there are more imports than exports, thereby impeding current economic growth. State and local governments are also troubled by low budgets, laying off teachers and policemen and thus weakening overall jobs growth. [Campus Action Progress, Economic Snapshot for July 2010]
Democrats in Congress are fighting to help small businesses create jobs here at home. We are taking America in a New Direction – creating good American jobs, providing the lowest taxes in 60 years for the middle class and small businesses, and closing tax loopholes that send jobs overseas. And while there are those who would like to take us back to the failed policies of the Bush Administration, we are committed to moving this nation forward to meet the challenges of the 21st century.
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