Morici: Fiscal Accord Won’t Help Economy, Jobs Market

Wednesday, 02 Jan 2013 10:19 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The agreement reached by Congress this week regarding the fiscal cliff won’t boost economic or job growth, says Peter Morici, a professor at the Robert H. Smith School of Business at the University of Maryland and former chief economist at the U.S. International Trade Commission.

“The tax and spending package passed by the Senate and House provides little prospects of improvement, as the U.S. economy continues to suffer from insufficient demand and will continue growing at a subpar 2 percent a year,” he writes in a commentary.

On the employment front, economists surveyed by Bloomberg offered a median forecast of a 150,000 payroll increase in December, leaving the jobless rate at 7.7 percent.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

“Job growth around 150,000 is a decent way to end the year,” Ryan Sweet, an economist at Moody’s Analytics, tells Bloomberg. “Businesses are worried, but not panicked.”

Still, that’s nothing to crow about, Morici says. The economy must add more than 356,000 jobs a month for three years to trim unemployment to 6 percent. And that won’t happen without economic growth of 4 to 5 percent, he notes.

“Without better trade, energy and regulatory policies and lower healthcare costs and taxes on small businesses, that is simply not going to happen.”

Previous policies that increased business regulations and healthcare costs won’t help. “[A]nd now higher taxes on small businesses discourage investments that raise productivity and competitiveness and create jobs,” Morici states.

Editor's Note: The ‘Unthinkable’ Could Happen — Wall Street Journal. Prepare for Meltdown

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Philadelphia-Area Factories Growing by Most in 21 Years

Thursday, 20 Nov 2014 13:37 PM

Manufacturing in the Philadelphia region grew at the fastest pace in nearly 21 years, a sign that factory output may be  . . .

Leading Economic Index Points to Solid Growth

Thursday, 20 Nov 2014 10:38 AM

A gauge of future U.S. economic activity posted a larger-than-expected gain last month, pointing to firm economic activi . . .

Fewer Than 300,000 File Jobless Claims for 10th Week in Row

Thursday, 20 Nov 2014 08:41 AM

Fewer Americans filed for unemployment benefits last week as the need to retain staff keeps firings at the lowest levels . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved