How spending cuts hurt the economy - dueling estimates
February 27th, 2011
12:03 PM ET
4 years ago

How spending cuts hurt the economy - dueling estimates

NEW YORK (CNNMoney) - The big spending cuts proposed by House Republicans could weigh on economic growth and jobs, but forecasts vary widely.

Economist Mark Zandi of Moody's Analytics said Sunday that if all $61 billion in proposed cuts for the rest of this year were enacted, the economy's growth could be reduced by half a percentage point. Many forecasters expect the economy to grow at around 3.5% this year.

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soundoff (5 Responses)
  1. Jilli

    Well if the cuts are a threat to our recovery, you can bet the republicans will press on with a renewed vigor. They have no concern for the recovery – in fact, they've done everything in their power to prevent a recovery to score cheap political victories. Problem with that is, that they have to come up with solutions. Oh, wait, they don't. The republicans campaigned on jobs, and yet we've heard nothing from their camp regarding jobs and reducing the unemployment rate. But hey, we're getting to rehash law settled 40 years ago by taking up abortion all over again.

    Americas traitors are in the congress – republicans working for electoral gains, not solving the nations problems.

    February 27, 2011 12:19 pm at 12:19 pm |
  2. vic nashville tn

    Question is which cut will hurt the economy?
    Investments cut will hurt economy stop the money flowing
    Poor and middle class programs cut will hurt the economy stop the money flowing

    No cash flow it will hurt the economy basic

    Republicans are giving the money to rich for their saving so negative cash flow

    Look at the list of republicans cut, motive behind those cuts “?” mark
    Absolutely they didn’t consider the deficit

    February 27, 2011 12:41 pm at 12:41 pm |
  3. Indy

    The Republicans have the worst record in history concerning budgets and fiscal responsibility. Talk to any respectable economist and they all agree that this is the absolute worst time to take an axe to the budget. This will set the country back another ten years, it wasn't bad enough that Bush almost got the Republican dream of destroying middle class America and now the Republicans are determined to finish off America at any cost.

    February 27, 2011 01:07 pm at 1:07 pm |
  4. Howard

    I see that the democrats are still trying to pitch the outrageous lie that America can spend its way out of debt !!!
    Only a complete brain dead fool would buy into that fantasy !!!

    February 27, 2011 01:17 pm at 1:17 pm |
  5. emmy skadittle

    how does this help putting more people out of work? so instead of taking money out we will be just spending in different areas (unemployment insurance, and more people at the emergency room because the don't have insurance)

    February 27, 2011 01:40 pm at 1:40 pm |