999 Nirvana: Top Cain Adviser Promises Plan Will Magically Deliver 6 Million New Jobs, 4 Percent Unemployment
"999 Nirvana: Top Cain Adviser Promises Plan Will Magically Deliver 6 Million New Jobs, 4 Percent Unemployment"
Herman Cain economic adviser Rich Lowrie — who helped the presidential candidate write his “999” economic plan despite having no formal training in economics — appeared on Fox News today where he made some pretty optimistic promises about Cain’s tax scheme:
LOWRIE: What will happen, economically, is that the economy will expand by two trillion dollars. Six million jobs are going to be created, bringing the unemployment rate back down to a more typical or natural rate of four, four and a half percent. Wages are going to go up by 10 percent. Business investment will go up by a third.
Lowrie — who is an investment adviser at Wells Fargo, not a macroeconomist — offers nothing to back up these rosy assertions, which sound almost too good to be true. The unemployment rate has dropped to levels Lowrie promises just a handful of times in last 100 years, and only during the most robust periods of economic growth. Moreover, wages for most Americans have fallen or stagnated in recent years, making his claim of 10 percent increases sound idealistic at best and naive at worst.