The Washington Post
By Lori Montgomery, Monday, February 28, 9:45 AM
A Republican plan to cut the federal budget this would destroy 700,000 jobs through 2012, according to an independent economic analysis that will be released Monday.
The report, by Moody’s Analytics chief economist Mark Zandi, offers fresh ammunition to Democrats seeking block the Republican plan. The GOP plan would terminate dozens of programs and slash federal appropriations by $61 billion over the next seven months.
Zandi, an architect of the 2009 stimulus package and has advised both political parties. Zandai was an economic advisor to John McCain during the 2008presidnetial elections.
Zandi predicts that the GOP package would reduce economic growth by 0.5 percentage points this year, and by 0.2 percentage points in 2012, resulting in 700,000 fewer jobs by the end of next year.
His report is similar to an analysis last week by the investment bank Goldman Sachs. It predicted that the Republican spending cuts would cause even greater damage to the economy, slowing growth by as much as 2 percentage points in the second and third quarters of this year.
Republicans have dismissed both reports, calling them the product of the same flawed economic thinking that produced President Obama’s $814 billion stimulus package . . .
Rightardia is not aware of any macroeconomic theory that suggests governments should cut spending during an economic crises.
That is what a business would do, not what a government does according to Keynesian economics, which is a widely embraced macroeconomic theory.
Are the Republican trying to stall the recovery for political gain in 2012? Or are thy just too pigheaded to see the "forest thorough the tress?"
Be aware that the two studies are from private enterprise, not the Government Accounting Office or the Congressional Budget office.
source: http://www.washingtonpost.com/business/economy/gop-spending-plan-would-cost-700000-jobs-new-report-says/2011/02/28/ABBK9oJ_story.html
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