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Go Home Why Eric Cantor Has No Answers

JONATHAN COHN OCTOBER 17, 2011

Why Eric Cantor Has No Answers

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Give Chris Wallace and Fox News credit. On Sunday, Wallace repeatedly asked House Majority Leader Eric Cantor tough questions about the Republican jobs plan. And Cantor repeatedly failed to answer them.

Here’s a partial transcript:

WALLACE:  Congressman Cantor, do you have an independent analysis that shows how this plan would grow the economy and add jobs?

CANTOR: First of all, I would say as to the Moody's economist that the president speaks to, they and their chief economist was the one that predicted that the stimulus program would keep unemployment from rising above 8 percent. So, I think we need to raise some questions about that assessment of his.

WALLACE: In fairness, he was an economic adviser to John McCain in 2008, Mark Zandi, and the fact there's a lot of the private economic firms that say whether it's 1 percent or 2 percent growth, a million jobs, 2 million jobs, that it would have some stimulative affect.

CANTOR: Let's look at this. There has --

WALLACE: Here's a question, do you have independent scoring of what your plan does?

CANTOR: We have -- we put forward a plan on the beginning of the year, our budget, OK, and we had independent Congressional Budget Office scoring which did several things. It talked about the fact that our plan actually dealt with the one crisis bringing down the debt and deficit over $6 trillion and it did talk about the ability for our plan to grow new jobs, yes. So, we've got that kind of analysis.

WALLACE: But you don't on this jobs plan?

CANTOR: Well, what this jobs plan is taking pieces of our overall vision for this country and saying, you know what? We've got to provide incentive for the private sector to grow.

You know, look at the facts, Chris. Since the president has taken office. There's been 1.6 million jobs lost in the private sector net. We've also seen the fact that 7.5 million foreclosures during this president's term.

Obviously, his economic plans are not working. That's why we are trying to say we've got to change directions here. We've got to focus on private enterprise and small business. We've got to get the entrepreneurs back in the game. And that's our plan does.

There’s a reason Cantor kept dodging the question. He has no answer. Republican leaders in the House and Senate have each put out job plans. But the plans have slogans, not specifics: Less regulation, repeal Obamacare, cut taxes, and so on. Professional forecasters can't make serious estimates without more information.

Now, the Republicans could come forward with such details soon. And maybe they will. But, if they do, it's unlikely the forecasters will conclude the plans have potential to boost jobs significantly in the near future. Why? Because Republicans aren't proposing the kind of measures that most forecasters believe create jobs during economic crises like this one.

Don’t take my word for it. Here’s Gus Faucher, director of macroeconomics at Moody’s Analytics. Greg Sargent had the good sense to interview him last Friday:

Should we look at regulations and make sure they make sense from a cost benefit standpoint? Certainly. Should we reduce the budget deficit over the long run? Certainly. But in the short term, demand is weak, businesses aren’t hiring, and consumers aren’t spending. That’s the cause of the current weakness — and Republican Senate proposals aren’t going to address that in the short term. ... In fact, they could be harmful in the short run, if the focus is on cutting spending,. They don’t say explicitly when they would cut spending, but the Republican focus is on cutting spending sooner and later.

As Steve Benen says, "shouldn’t it tell the political world something important when there are two alternatives to job creation, and one is terrified of economic analysis and examination?"

 

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6 comments

And one reason is that the Republicans held the American Economy hostage in December 2010 to get the Bush Tax-Cuts renewed, held it hostage again in April 2011 to get a 38 billion dollar CUT in the budget, then held it hostage from May through August before they'd pass a Debt Authorization bill. The reason our economy is not recovering is because they've forced Obama to implement a REPUBLICAN plan for recovery -- lower taxes, less Government spending. And the result has been higher deficits, less help for states so THEY fire their state workers, and a higher unemployment rate. That MUST be laid at their feet. Otherwise, Obama's policies aren't going to get a chance to work, and Republican intransigence will be rewarded in 2012, as it was in 2010. And the country's economy will continue down the road to disaster.

- AllanL5

October 17, 2011 at 4:25pm

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Why doesn't village idiot Cantor do away with any pretense? "Look Chris I couldn't care less about the analysis of this. I just want lower taxes for the rich because that is who I work for..."

- MikeB.

October 17, 2011 at 5:20pm

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Nice piece. Concise and a question we all keep asking. Where's the data that shows regulations are causing unemployment? Where's the data that shows that the Bush Tax Cuts have stimulated or are stimulating the economy? Sure, business prefers low taxes and no regulation, so what? Science now knows that kids prefer Twinkies.

- Nusholtz

October 18, 2011 at 8:41am

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Now we're told (on the Ed Show last night) that Cantor's giving a speech on income inequalty this week. That ought to be rich.

- ballston

October 18, 2011 at 8:45am

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He said "rich"...ha!
Cantor doesn't have answers because if he told the truth nobody would vote for him ever again. "I sold my soul to the super rich so that when they take over the country I can be one of their favorite pets and won't live in destitution like you scum" is a terrible campaign platform.

- GSpinks

October 18, 2011 at 11:00am

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Cantor does not need any evidence or studies to back up his proposals. It is axiomatic on the right that taxes and regulations strangle business. This is a first principle, not subject to doubt or debate.

- Vekert

October 18, 2011 at 1:19pm

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