[Since Rob “EaBo Clipper” Eno enjoys front-paging economic and budgetary stories, I wonder if he’ll front-page this or just sweep it under the rug.]
This isn’t far left-wing activists talking. It’s Goldman Sachs:
A confidential new report prepared by Goldman Sachs for its clients says spending cuts passed by the House of Representatives last week would be a drag on the economy, cutting economic growth by about two percent of GDP.
“Under the House passed spending bill [which cut spending by $61 billion],” says the report, which was obtained by ABC News, “the drag on GDP growth from federal fiscal policy would increase by 1.5pp to 2pp in Q2 and Q3 compared with current law.”
In case anyone was wondering, U.S. GDP in 2010 was $14.66 trillion. When economic growth is cut “by about two percent of GDP,” as Goldman Sachs suggests, that amounts to $293.2 billion.
Wall Street is declaring that the John Boehner GOP will demolish U.S. GDP to the tune of almost $300 billion in one fell swoop. And that’s not $300 billion on health care or infrastructure or national defense. That’s pissing $300 billion down the toilet for nothing.
According to Wall Street (!!!), John Boehner is anti-economic growth. I hope that news doesn’t make him cry.