Yesterday, Senate Republicans unveiled their much-hyped alternative to President Obama’s jobs plan. The “Jobs Through Growth Act” is heavy on Republicans’ favorite policies like cutting corporate taxes and reducing regulation, but light on details. Nevertheless, Sen. Rand Paul (R-KY) declared that it would create 5 million jobs.
Moody’s Analytics estimated that Obama’s American Jobs Act would create 1.9 million jobs, grow the economy by 2 percent and cut unemployment by a percentage point. Their review of the Republicans’ plan is not nearly as favorable. In fact, the Washington Post’s Greg Sargent reports that one Moody’s economist thinks it may damage the economy even more:
But an economist I spoke to just now said there isn’t enough information in the plan to evaluate whether it could even achieve its goals as Republicans themselves have defined them. He said it won’t help the economy in the short term, and could even make matters worse.