Democrats suggest the State and local government bailout bill to be considered in the House on August 10 will temporarily “save” certain government jobs. But what they won’t tell you is that the $9.6 billion in permanent tax hikes they would impose to “pay for” that extension of stimulus would destroy over 141,000 private sector jobs. That would be on top of the 2.5 million private sector jobs already eliminated in the wake of their 2009 stimulus plan.
The estimate that this latest Democrat “stimulus” bill will cause the loss of 141,000 jobs was derived by using the economic model developed by Dr. Christina Romer, the Chair of President Obama’s Council of Economic Advisors. Dr. Romer and Jared Bernstein, the Vice President’s Chief Economist, incorporated this analysis in the Administration’s own estimates of the job effects of their 2009 stimulus plan.