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A former mccain economist says a govt shutdown could hurt the economy. believe it or not?

A former mccain economist says a govt shutdown could hurt the economy. believe it or not? Topic: Steps to implement a business plan
July 22, 2019 / By Jenni
Question: An extended U.S. government shutdown would cause increasing harm to the nation’s economy, with the Washington area -- home to about 350,000 federal workers -- bearing the brunt of the damage. “The economic damage would mount pretty quickly,” in a two- or three-week shutdown, said Mark Zandi, chief economist at Moody’s Analytics Inc. in West Chester, Pennsylvania. “The longer this drags on, the greater the odds it undermines confidence more broadly.” The direct costs of lost income to federal workers and contractors would be about $6 billion a week, said Zandi. “The dollars and cents would start to add up.” “I think the economic damage from a government shutdown would mount very quickly,” said Mark Zandi, chief economist of Moody’s Analytics who has been an economic adviser to both Republican and Democratic lawmakers. “And the longer it dragged on, the bigger the hit to business, consumer and investor confidence, the greater the odds of a renewed recession.” He puts the danger zone at two weeks or longer. Mark Zandi Chief Economist Moody's Economy.com January 21, 2009 The new president and Congress are working to implement a large fiscal stimulus plan to mitigate the severe economic downturn. The latest step in this effort is the plan put forth by House Democrats in mid-January. As laid out in the American Recovery and Reinvestment Act, the plan would cost $825 billion over two years and include a large number of spending increases and tax cuts.i The national, industry and state economic impacts of this stimulus plan are assessed in the following analysis. The House stimulus plan will not reverse the current recession, but it will provide a vital boost to the flagging economy. With the stimulus, there will be 4 million more jobs and the jobless rate will be more than 2 percentage points lower by the end of 2010 than without any fiscal stimulus. Without stimulus, unemployment will rise well into the double digits by this time next year, and the economy will not return to full employment
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Best Answers: A former mccain economist says a govt shutdown could hurt the economy. believe it or not?

Finuala Finuala | 2 days ago
When there is a $6 billion dollar per week cut in spending and gas at $4.00 per gallon will hit the economy like a sledge hammer. There will be no eating outthere will be fewer groceries purchased, there will be non-payment of rent/mortgages because they need the the money to pay other bills. The small business loans will not be processed so they will have to lay off more employees. Then they will also impact our economy. Welcome to the newest Great Depression!!
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Finuala Originally Answered: Now that the economy is screwed, does it finally pay decent again to be an economist?
These guys that get paid for making predictions on TV (and they don't get paid a lot to do it) also have a boatload of peer reviewed economic articles on their resumes. So, the trick is to publish a bunch of articles in the Journal of Economics, American Economics Journal or something similar and then watch the world beat a path to your doorway. A professorship at a major university like Harvard, Stanford, Chicago or Yale would help too.

Cynthia Cynthia
Of course, we all realize that. We also realize that continuing to allow Democrats to engage in idiotic government spending will hurt us even more.
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Cynthia Originally Answered: John McCain says he's going to cut spending to save the economy.but what is he going to cut?
Anyone who knows even a smidgen about economics would know that if you cut taxes, more jobs are available, because business can invest in this country, much going toward expansion, and more jobs with more people to tax, increases revenue. Increasing taxes on those with money does nothing but hurt the middle class, and the poor. McCain may start with those who are on cyclic welfare and maybe they will take advantage of job training programs that are already provided and turn these people into productive citizens instead of leeches on society. There are many worthless programs that could just go away. I do not mean welfare should be gone, but there should be a limit. The disabled and the elderly certainly need programs, but not healthy , capable individuals for the long term. All the wasteful government spending, like the million spent on the Woodstock Museum, or the hundreds of thousands spent on fruit fly research in France! There are many places where we can cut the fat, and not with our security as a certain past president did, which allowed enemies to receive flying lessons and fly into the Twin Towers, and kill many Americans. ~
Cynthia Originally Answered: John McCain says he's going to cut spending to save the economy.but what is he going to cut?
Reece- Cutting taxes increases Federal Tax Income. Raising taxes hurts the economy. If your taxes go up, your disposable income goes down. Where do you spend your extra disposable income? Most people I know use it for dinners out, movies, impulse shopping, etc. Cut that out, and suddenly waitresses will get hurt, movie theaters will see a drop in revenue and cut jobs, and the same at retail outlets as sales drop. Taxing the rich has the same effect, except they spend their extra money on huge big-ticket items (houses, boats, jets, etc - creating jobs for people) and things like small businesses. Take that money away, and jobs are lost very quickly. Lost jobs means no income for many meaning no income taxes for the government. Raising taxes hurts America. Economic Stimulus, Housing Relief, Universal Health Care are all EXPENSES that should be opposed. Private Social Security accounts, for long term investors, will do better in the market than government returns. Any half-way intelligent investor knows that as retirement approaches you move your money from stock to more guaranteed income (bonds, annuities, etc) sources. Besides, the proposal was for people to put a very small percentage of their SS tax (I think it was 4%) into private accounts. Even more importanly, Social Security is not supposed to be your full retirement account - it started as a VOLUNTARY stop-gap retirement supplement. There is not more personal responsibility any more. Smart people are planning for retirement without SS money in the picture.

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