Tuesday, March 1, 2011

700,000 Jobs At Risk

A new report from a reliable source says the GOP plan to cut the deficit could also cost up to 700,000 jobs.

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.

The Republicans are dismissing the report as “flawed” because it doesn’t support their mantra, and also because most of those jobs would be in the public sector — i.e. government jobs — and everyone knows that those aren’t real jobs, anyway.

The election last fall was, according to the Republicans, “all about jobs.” Yeah, well, if we knew that this was what they had in mind, I think it would have gone a little differently.