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2016 Postmortem
Related: About this forumVanguard: Debt-ceiling debate cost $112 billion over past two yrs; uncertainty costs 45k jobs/month
Here is an interesting op-ed piece from the CEO of Vanguard, Bill McNabb.
...Our economists at Vanguard isolated changes in the U.S. economy that we determined were specifically due to increases in policy uncertainty, such as the debt-ceiling debacle in August 2011, the congressional supercommittee failure in November 2011, and the fiscal-cliff crisis at the end of 2012. This gave us a picture of what the economy might look like if the shocks from policy uncertainty had not occurred.
We estimate that since 2011 the rise in overall policy uncertainty has created a $261 billion cumulative drag on the economy (the equivalent of more than $800 per person in the country). Without this uncertainty tax, real U.S. GDP could have grown an average 3% per year since 2011, instead of the recorded 2% average in fiscal years 2011-12. In addition, the U.S. labor market would have added roughly 45,000 more jobs per month over the past two years. That adds up to more than one million jobs that we could have had by now, but don't.
At Vanguard we estimate that the spike in policy uncertainty surrounding the debt-ceiling debate alone has resulted in a cumulative economic loss of $112 billion over the past two years. To put that figure in perspective, the Congressional Budget Office estimates that sequestration may reduce total funding by $85 billion in 2013. Clearly, the U.S. debt situation is the economic issue of our generation.
http://online.wsj.com/article/SB10001424127887323789704578443431277889520.html
We estimate that since 2011 the rise in overall policy uncertainty has created a $261 billion cumulative drag on the economy (the equivalent of more than $800 per person in the country). Without this uncertainty tax, real U.S. GDP could have grown an average 3% per year since 2011, instead of the recorded 2% average in fiscal years 2011-12. In addition, the U.S. labor market would have added roughly 45,000 more jobs per month over the past two years. That adds up to more than one million jobs that we could have had by now, but don't.
At Vanguard we estimate that the spike in policy uncertainty surrounding the debt-ceiling debate alone has resulted in a cumulative economic loss of $112 billion over the past two years. To put that figure in perspective, the Congressional Budget Office estimates that sequestration may reduce total funding by $85 billion in 2013. Clearly, the U.S. debt situation is the economic issue of our generation.
http://online.wsj.com/article/SB10001424127887323789704578443431277889520.html
Any way we can get the GOP to write a check for $261 billion for their posturing?
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Vanguard: Debt-ceiling debate cost $112 billion over past two yrs; uncertainty costs 45k jobs/month (Original Post)
high density
May 2013
OP
Uncertainty directly and intentionally cause by the Republican Party in their quest ....
Scuba
May 2013
#1
Uncertainty that they can then turn around blame on President Obama/Democrats
Proud Liberal Dem
May 2013
#4
GOP, killing American prosperity and increasing 1% prosperity one vote at a time.
freshwest
May 2013
#2
Scuba
(53,475 posts)1. Uncertainty directly and intentionally cause by the Republican Party in their quest ....
... to help the .001% get ALL THE FUCKING MONEY!!!
Proud Liberal Dem
(24,422 posts)4. Uncertainty that they can then turn around blame on President Obama/Democrats
freshwest
(53,661 posts)2. GOP, killing American prosperity and increasing 1% prosperity one vote at a time.
Can this ever be said enough?
Is anyone reading in the Beltway?
Think of the loss to this country.
rlegro
(338 posts)3. Me, I'm more concerned about...
...the uncertainty created by modern financiers and their secret, illegal or deregulated manipulations of markets and our economy. The estimated cost of government-induced uncertainty is chump change compared with the uncertainty created by the 21st Century's typical, computer-aided, private, capitalist money-changer. Let's see Vanguard estimate that cost, which we already know from the Great Recession runs into the trillions of dollars.