The Economic Policy Institute releasedan analysis today of the programs in President Obama’s newly proposed budget plan which are aimed at boosting job growth. All told, it would yield approximately 1.5 million new jobs in fiscal year 2012, and around 1.3 million in 2013. This would result in a drop in the unemployment rate of 0.5 percent in 2012 and 0.4 percent in 2013, EPI estimated.
This is consistent with the overall macroeconomic strategy of Obama’s budget: boosting demand immediately, while holding off on significant budget cuts until later in the 10 year window. This approach drives up job growth and would leave the economy at a much more robust level of output when the budget cuts finally do hit — and thus much less likely to falter again in response to those cuts.
Also worth noting: This collection of programs in the new budget is a slight reworking of theAmerican Jobs Act that the President proposed last fall, and which the GOP filibustered into extinction.