IN THE NEWS
FOR IMMEDIATE RELEASE
July 16, 2010 |
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CONTACT:
Katie Grant
Maureen Beach
(202) 225 - 3130 |
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ECONOMY WEEKLY: WEEK OF JULY 12, 2010
“The Recovery Act has increased real GDP, relatively to what it otherwise would have done, by between 2.7 and 3.2%.... It increased employment, relative to what otherwise would have happened, between 2.5 and 3.6 million.”
– Christina Romer, Chair of the Council of Economic Advisers, 7/14/2010
Economy Highlights:
• The Treasury Department reported that businesses have hired 4.5 million workers under a new program enacted as part of the HIRE Act, that provides tax breaks for hiring unemployed workers. “President Barack Obama signed a law in March that exempts businesses hiring people who have been unemployed for at least 60 days from paying the 6.2 percent Social Security payroll tax through December. Employers get an additional $1,000 credit if new workers stay on the job a full year. Treasury released a report Monday estimating that from February to May, businesses added 4.5 million workers who qualify for the tax breaks. Those businesses are projected to save $8.5 billion in taxes.” [
Associated Press,
7/12/2010]
• The nonpartisan Economic Policy Institute (EPI) released a report on the economic benefits of unemployment insurance, concluding that expanded unemployment benefits have added 1.15 million American jobs since 2007, promoted spending resulting in longer hours for the employed, and resulted in a 1.7% boost in GDP. “Looking at the impact on the job count alone, payroll employment was 1.15 million higher as a result of the expanded unemployment compensation system, helping to offset the more than 8.0 million payroll jobs that had been lost in the downturn through the first quarter of 2010.” [The Hill, 7/15/2010]
Recovery Highlights:
• The White House Council of Economic Advisers released its quarterly report on the impact of the Recovery Act, finding that the legislation has saved or created as many as 3.6 million jobs. “The economic-stimulus legislation will help encourage $280 billion of investment by private industry and local governments, creating jobs…. The White House asserted that the $862 billion stimulus package has been even better for the country than previously advertised. Updating the estimate of its impact, the White House now projects that the vast spending act has created or saved between 2.5 million and 3.6 million jobs.” [
Seattle Times,
7/14/2010;
CEA Report]
• President Obama visited Compact Power, Inc. a a battery plant in Holland, Michigan, to discuss the impact the Recovery Act had on that community. “The plant is the ninth of nine new advanced battery factories to start construction as a result of the $2.4 billion in Recovery Act advanced battery and electric vehicle awards the President announced last August. The project is expected to create hundreds of construction and manufacturing jobs in Holland. Once fully operational, the Compact factory will produce battery cells to support 53,000 Chevy Volts a year.” [
White House,
7/15/2010]
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