Jobs Outlook and Fiscal Cliff Uncertainty Drive Forecasts
Texas Insider Report: Washington DC The deteriorated outlook from todays
Blue Chip Economic Indicators® proves one thing: uncertainty from the upcoming fiscal cliff will continue to drag the economy downward. The President has continued to make poor economic policy decisions that are generating uncertainty" says Rep. Kevin Brady (R-TX) Vice Chairman of the Joint Economic Committee.
The Blue Chip consensus downgraded its forecast for real GDP growth by 0.1 for the last three quarters of 2012 and the entirety of 2013. However this forecast assumes that the expiring Bush tax cuts will be renewed the Eurozone situation will not worsen and Chinas economy will have a soft landing.
88.6 of Blue Chip economists cited uncertainty over the future of the tax cuts as an important factor slowing economic growth and job creation. Thats the real issue here and unfortunately the President is ignoring the numbers" Rep. Brady noted.
If the Blue Chip consensus forecast turns out to be correct there will be fewer payroll jobs in America at the beginning of November than when the President took office in January 2009. In fact if the forecast is correct the only month the unemployment rate will have been below 8 during President Obamas term is the month he took office."
Brady said It is alarming that almost a quarter of the economists believe that a recession will begin in the United States during the next twelve months and thats if we dont hit the fiscal cliff" in January. We need to extend the current income tax reductions for everyone repeal ObamaCare and loosen the suffocating web of red tape to create new jobs."
