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The GOP budget cuts are said to cut over 700k jobs. Here are some reports by Politico and Newser...   >>>

The GOP budget cuts are said to cut over 700k jobs. Here are some reports by Politico and Newser



"(Newser) – The spending cuts in the Republicans’ budget proposal would cost the country up to 700,000 jobs and hurt the country’s economic growth, according to Moody’s chief economist. Mark Zandi estimates that the proposed budget would reduce GDP growth by 0.5% in 2011 and another 0.2% in 2012, hurting job creation, Politico reports. “While long-term government spending restraint is vital,” Zandi wrote, “too much cutting too soon would be counterproductive.” ..."

-Newser.com (Kevin Spak)



"Republicans’ efforts to cut billions of dollars from the federal budget between now and October could cost the country as many as 700,000 jobs by the end of next year, a nonpartisan economic analysis released Monday found.



House Republicans said last week that they want to cut spending by $2 billion a week for the rest of the fiscal year, adding up to a total of $61 billion in cuts during the next seven months. But that plan could come with the very real cost of jobs, Moody’s Analytics said in a report released Monday, buoying Democrats who argue that the GOP is pushing too many cuts too quickly.



Moody’s chief economist, Mark Zandi, projected that the House proposal would cut real GDP growth by 0.5 percent in 2011 and 0.2 percent in 2012. That, in turn, would lead to 400,000 fewer jobs being created than expected by the end of this year and a total of 700,000 fewer jobs by the end of 2012.



“While long-term government spending restraint is vital, and laying out a credible path toward that restraint very desirable, too much cutting too soon would be counterproductive,” Zandi wrote. The economy is adding from 100,000 to 150,000 jobs each month, he said, but until that number reaches about 200,000 on a monthly basis, “[i]mposing additional government spending cuts before this has happened, as House Republicans want, would be taking an unnecessary chance with the recovery.”



House Speaker John Boehner’s spokesman Michael Steel responded with criticism of Zandi’s conclusions. “The fact that a relentless cheerleader for the failed ‘stimulus’ — which the Democrats who run Washington claimed would keep unemployment below 8 percent — refuses to understand that ending the spending binge will help the private sector create jobs is sad, but not surprising,” he wrote in an e-mail...."

-Politico.com (Jennifer Epstein)