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Miracle Mitt

August 4, 2012

So Mitt Romney is now promising to create 12 million jobs in his first term.

That’s adorable.

Romney economic adviser Glenn Hubbard put out a white paper yesterday explaining the goal, but as the Huffington Post’s Jon Ward notes, “The paper was less actuarial work with raw data and specific numbers, however, and more of an economic philosophy argument based largely on the premise that simply by undoing much of what President Obama has done since taking office, the economy would recover at a faster pace than it has been from the recession that began in late 2008.”

Still, the paper states that “history shows that a recovery rooted in policies contained in the Romney plan will create about 12 million jobs in the first term of a Romney presidency.” Notably, the paper does not provide much historical evidence to support this claim, and where it does look at history, it focuses on unemployment rates, not job creation numbers.

Where have we heard that name Hubbard before? Hmmmm…

Hubbard and his co-authors would like you to believe their prognostications rather than the years of historical experience that prove their predictions wildly wrong and their favored policies incapable of delivering job growth on the scale of that experienced under the Obama administration. The central premise of Gov. Romney’s economic plan is nearly identical to that put into practice by President George W. Bush—cutting taxes aimed largely at the wealthy and big corporations in order to spur job creation and economic growth. Yet the opposite happened. We experienced a “jobless recovery” and the weakest economic expansion in post-World War II U.S. history under our last president—followed by the Great Recession of 2007–2009.

Back in 2001, as chairman of President Bush’s Council of Economic Advisers, Hubbard predicted that tax cuts slanted disproportionately to Americans in the topmost tier of income and wealth distribution would “quickly deliver a boost to move the economy back toward its long-run growth path,” starting with adding 300,000 more jobs and half a percentage point to the 2002 growth rate.

Then in early 2003, as President Bush proposed another round of tax cuts, Hubbard predicted these would add another 1.4 million jobs to the U.S. economy, over and above the 3.1 million jobs the economy would create on its own from natural economic growth in that time. Mankiw—who took over for Hubbard as chairman of the Council of Economic Advisers later in 2003—co-signed a letter with Hassett (then-economist at the American Enterprise Institute) to President Bush “enthusiastically” endorsing more tax cuts because “it is fiscally responsible and it will create more employment [and] economic growth.”

Unfortunately for American workers, these rosy predictions failed to pan out. (see Figure 1) In fact, total employment in the U.S. economy created only 2.4 million new jobs by the end of 2004, or less than half of what Hubbard predicted. By 2007 the economy was running nearly 8 million jobs short of what Hubbard predicted. He and his colleagues were off by a long shot.

Oh yeah, he’s yet another George W. Bush adviser brought into the Romney campaign to prop up the same despicable economic ideology that has been rotting our nation for the inside out for 30 years now.

If you’re still on the fence in this election, just take a minute and think about that. If you vote for Mitt Romney, you are voting for another four to eight years of George W. Bush. He has surrounded himself with Bush administration toadies and they are the ones making the policy decisions.

If you liked massive deficits fueled by illegal wars and tax cuts for the wealthy, then you’ll love the Romney administration.

If you liked stagnant wages and the worst job growth since WWII, then you’ll love the Romney administration.

If you liked the worst recession in nearly a century caused by deregulation and the criminality of Wall Street, then you’ll love the Romney administration.

Our nation is in tatters. We simply cannot withstand another Bush administration. Faith based economics and imperial foreign policy has already left an open wound that will take decades to heal.

Any more governing by Tax Cuts and Wishes may very well end us.

(Original Loaves and Fishes painting by the very talented Christopher Creek.)

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