The “American Jobs Act” and its effect on US growth
The “American Jobs Act” and its effect on US growth
The “American Jobs Act” and its effect on US growth
Global & Regional Focus Notes
14 Σεπτεμβρίου 2011
• President Obama called on Congress to pass a $447bn package, aiming at stimulating economic growth, by supporting job creation, providing aid to state and local governments and promoting infrastructure development. • If enacted in its entirety, we estimate that the proposal could boost real GDP growth by about 1.2% in 2012, turning the projected fiscal restraint of -1.0% of GDP in 2012 to a fiscal boost of +0.2% of GDP. • We view as a more likely scenario the extension of the 2% employee-side payroll tax cut, in combination with the extension of the emergency unemployment compensation. In such a case, we estimate that it could boost real GDP growth in 2012 by about 0.6%.