Commerce.gov is getting a facelift soon. See the new design.

The American Jobs Act: GDP Growth and Job Creation

Printer-friendly version
The American Jobs Act Banner

Today, the Bureau of Economic Analysis (BEA) released the advanced estimate for the 3rd quarter 2011 Gross Domestic Product. The report said the U.S. economy grew 2.5% in the third quarter, compare with 1.3% in second quarter of 2011. This is a tremendous step-up from the 0.4% growth in the first quarter and 1.3% in the second quarter of 2011. The good news is that consumers increased their spending, businesses continue to invest, and our exports grew, but continued growth is vital. U.S. Commerce Secretary John Bryson said this morning, “In spite of headwinds hitting the U.S. economy, today’s GDP report – the ninth straight positive quarter – reflects strong consumer spending and export growth and continued investment by American businesses.”

This growth comes at a time when only two months ago there were fears of a double dip recession and the volatile stock market resembled a wild roller coaster. Consumer spending, factory production and exports all have increased. This type of growth to GDP shows encouraging signs of a growing and improving economy, but faster growth is needed to replace the jobs lost in the recent downturn and to reduce long-term unemployment. That's why the President has offered his American Jobs Act.

The President’s American Jobs Act has been supported by economists across the political spectrum. They have said repeatedly it will create jobs and boost economic growth.  Susan Wachter, a finance professor at the University of Pennsylvania’s Wharton School suggests, Social Security tax cuts would not only grow the economy, but create 1 million jobs in the next year. Mark Zandi, of Moody Analytics, says the American Jobs Act creatively helps fuel growth for small businesses who have been hurt most by the recession. He projects that the American Jobs Act would grow the economy at an additional 2 percentage points and add 1.9 million jobs all in 2012. 

Focusing on durable goods, preventing teacher layoffs and keeping first responders on the job, and cutting payroll taxes which will support consumer spending are three of the many measures included in the American Jobs Act that will continue to grow the economy and create more jobs. All of this will be fully paid for as part of the President’s long-term deficit reduction plan. See all of the details of the American Jobs Act on the White House blog.

Comments Closed

Due to increased spam, comments have been closed on this content. If you wish to comment about the content, we encourage you to email webmaster@doc.gov.

Not Quite

Saw a link to this blog in the Commerce Week at a Glance email I receive. It claimed.

"The American Jobs Act -- On the blog this week, we discussed the positive effect of the American Jobs Act on GDP growth and job creation, " ...

The email was apparently written by Bruce Andrews, Chief of Staff. I sincerely hope this was a mere slip up, otherwise I would ask Bruce how a bill can possibly be responsible for GDP growth and job creation in the 3rd quarter when it hadn't even been introduced to Congress until very late in the 3rd quarter, and it was quickly evident that it would never pass.

Also, Zandi's prediction of assertion that it will fuel small business was made on Sept 9th, before it was identified how the 450 B price tag would be paid for. Now that the bill will be funded via tax increase on those making over 250 K, which directly affects many small businesses, I wonder if Mr. Zandi could make the same prediction with a straight face.

Projected GDP growth if the American Jobs Act is passed

The email you received was from Bruce Andrews and the blog post wasn't about how the American Jobs Act contributed to 3rd quarter growth, but how it would contribute to future GDP growth after it was passed. Read more here - http://www.commerce.gov/blog/2011/10/27/american-jobs-act-gdp-growth-and...

Regarding Mr. Zandi's assessment of the plan, you'll have to ask him, but he hasn't backed down from his earlier estimates even after the entire legislative plan was submitted to Congress.

Glad We Are On A Path of Positive Growth

Just happy this country is on a path of growth. We clearly have a long way to go and for every who thought we would have a quick recovery, is obviously getting it now. But to see these #'s is very reassuring and we can only do our part and hope the path to recovery and I hope my company can do whatever is take to contribute to positive job growth. Alex The Tile Shop