The House GOP jobs plan, introduced last week by Speaker John Boehner, has some familiar themes: tax cuts for business owners, deregulation for corporations, and cuts to spending on social programs.
What the document fails to provide, however, is an explanation for how any of these ideas – many of which have been implemented to varying degrees over the last decade – would create jobs.
“These are the same policies in the Bush administration that did not create jobs, that increased the deficit [and] did not strengthen the middle class,” said House Minority Leader Nancy Pelosi.
Correlating job loss and the recession with the start Obama presidency, the plan ignores the eight years prior, in which President George W. Bush cut taxes for the rich and supported deregulation of the financial sector. One failed to create jobs, and the other helped lead to a near-collapse of the American economy.
It remains unclear how more tax cuts and deregulation will encourage business owners to hire. As we reported before, economists insist that government spending – not austerity – will create the demand that would lead to more jobs.