Tuesday, March 1, 2011

700,000 Jobs

To see why short-term spending cuts are bad when you are trying to cover read this article that references Moody.com's Mark Zandi (one of the more popular economists today).

Moody's predicts the spending cuts would reduce growth by 0.5% this year and 0.2% in 2012
Goldman Sach predicts the spending cuts would reduce growth by 2% in the second and third quarter this year.

Like I've said before, we need to contain budget deficit and it needs to be a priority, but simply cutting spending areas in the short-term is not the fix we need. It further weakens a struggling economy and it doesn't address the primary budget issues (medicare, defense, and social security).

1 comment:

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