The Bureau of Labor Statistics has released its monthly employment data, and the picture is bleak: the American economy lost 84,000 jobs in August, and the employment rate jumped to 6.1%, the highest in five years.
These numbers are a continuation of trends resulting from the policies of George W. Bush: when times are good, they’re only good for corporations and the wealthy, and when times are bad, they’re mostly bad for the middle class.
Take a look at the comparison in job growth from Bush’s presidency to the eight years before George W. Bush:
Unfortunately, John McCain plans to continue George W. Bush’s failed economic policies. Today, in response to the new job numbers, McCain’s campaign said “Americans are hurting and we must act to create jobs.”
They’re right, but that’s not what John McCain’s Bush-style economic plan would do.
The centerpiece of John McCain’s “jobs” plan is a $175 billion tax cut for corporations, including a reduction in the corporate tax rate from 35% to 25%. Unfortunately, according to the CBO, cutting the corporate rate “is not a particularly cost-effective method of stimulating business spending” and “does not create an incentive for them to spend more on labor or to produce more.” In other words, it doesn’t create jobs.
This is further reinforced by an analysis by Moody’s Economy.com ranking the best “bang for the buck” methods of stimulating the economy and raising GDP (creating American jobs in the process).
Accelerated depreciation, making the Bush tax cuts permanent, and cutting corporate taxes, the most expensive pieces of John McCain’s plan, are ranked the lowest, far below investment in infrastructure, aid to state governments and a refundable lump-sum tax rebate.
But maybe John McCain just really believes that George W. Bush’s management of the economy is “fundamentally strong.”