A new analysis by Moody’s confirms the Republican plan to slash spending would devastate America’s economy:
The report, by Moody’s Analytics chief economist Mark Zandi, offers fresh ammunition to Democrats seeking block the Republican plan, which 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 who has advised both political parties, 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 comes on the heels of a similar analysis last week by the investment bank Goldman Sachs, which 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.
How many jobs would Sen. Harry Reid’s plan cost? I haven’t seen an analysis – if you have, please post it in comments. But as E.J. Dionne points out, Democrats are caught in the Beltway Deficit Feedback Loop – focused exclusively on cutting spending while Americans continue to be most worried about jobs & the economy.