New analysis shows extreme plan endorsed by Sen. Corker, GOP presidential front runners would cost Tennessee 184,569 jobs
NASHVILLE—In advance of tonight’s GOP presidential debate in California, the Tennessee Democratic Party released a new estimate of the number of jobs which would be lost in Tennessee if the Republican Party’s presidential candidates and U.S. Sen. Bob Corker are able to pursue their extreme economic policies.
The analysis conducted by the Democratic National Committee found that just the balanced budget amendment, like the one included in the Tea Party budget plan passed by the U.S. House of Representatives this summer, would result in the loss of 9.5 million American jobs and 184,569 jobs in Tennessee.
The loss of so many jobs would likely sink the economy into a depression the likes of which the country hasn’t experienced since the Great Depression. Sen. Corker and every Republican presidential candidate has come out in favor of a balanced budget amendment to the constitution or supported the Tea Party budget plan which contains one.
TNDP Chair Chip Forrester released this statement:
“9.5 million American jobs lost and 184,569 jobs lost here Tennessee, a second Great Depression, devastation for the middle class, small businesses, students and seniors, an end to Medicare, and a slashed Social Security — that’s the Republican plan for our economy.
“There’s no question we need to get our fiscal house in order and get the economy moving, but the price Mitt Romney, Rick Perry, Michele Bachmann and Sen. Bob Corker are willing to pay to appeal to the most extreme and narrow elements of the Tea Party is too high – especially for Tennesseans.
“The Republican approach is like setting dynamite to your home to fix a leaky faucet — and these misguided choices are the result of a Republican Party which has turned over an increasing amount of power to its Tea Party fringe.
“Americans want real solutions to the problems we face and they want a plan to create jobs in the short term and lay a foundation for long-term economic prosperity. What Republicans are proposing falls devastatingly flat on all fronts.”
The new analysis looked at the nonpartisan Congressional Budget Office’s (CBO) August deficit projections for 2012 ( $991 billion deficit with CBO options for Iraq drawdown, extension of all tax provisions and Alternative Minimum Tax indexing and accounting for the so-called “Doc” fix), and using the conservative Romer-Bernstein rule of thumb that 1 percent of GDP equates to 1 million jobs, concluded that if the plan were fully phased in 2012 and nearly a trillion dollars in federal spending was slashed, the balanced budget amendment would cost 9.5 million jobs nationwide.
Because of the balanced budget amendment’s strict requirements for deep cuts, hard spending caps and a two-thirds majority to raise revenue, Congress would be virtually helpless to reverse the negative effects of these Tea Party Republican policies.
Corker Praises House for Passing Cut, Cap, and Balance, Calls on Senate to Do the Same. [Corker.Senate.gov, 7/21/11]
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