{"id":279000,"date":"2011-02-23T23:20:44","date_gmt":"2011-02-23T23:20:44","guid":{"rendered":"http:\/\/www.ghanamma.net\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/"},"modified":"2011-02-23T23:20:44","modified_gmt":"2011-02-23T23:20:44","slug":"gop-spending-cuts-would-hit-economy-hard","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/","title":{"rendered":"GOP spending cuts would hit economy hard"},"content":{"rendered":"<p><div readability=\"90.1414141414\"><span id=\"fb-recommend\"\/><br \/>\n<span>By Jeanne Sahadi, senior writer<\/span><span>February 23, 2011: 6:38 PM ET<\/span><!--startclickprintexclude--><br clear=\"all\"\/><!--endclickprintexclude--><!-- CONTENT --><\/p>\n<p>NEW YORK (CNNMoney) &#8212; The more federal spending Congress slashes this year, the greater the potential drag on economic growth, according to a new analysis from Goldman Sachs.<\/p>\n<p>In a research note, economists at the Wall Street bank estimate that the House GOP&#8217;s spending bill &#8212; which <a href=\"http:\/\/money.cnn.com\/2011\/02\/18\/news\/economy\/budget_cuts_2011\/index.htm\">would cut $61 billion<\/a> between March and Sept. 30 &#8212; could reduce economic growth by 1.5 percentage points to 2 percentage points in the second and third quarters. <\/p>\n<p><!-- REAP --><!--startclickprintexclude--><!--endclickprintexclude--><!-- \/REAP --><\/p>\n<p>Last week, the Federal Reserve forecast the economy would grow between 3.4% and 3.9% this year.<\/p>\n<p>The drag would be less if lawmakers decide to cut only $25 billion,<b> <\/b>which Goldman believes is more likely.<\/p>\n<p>Goldman estimates a 1 percentage point drop in growth in the second quarter but adds that &#8220;would quickly fade over the next two quarters as spending stabilizes at a lower level.&#8221; And by year-end, a $25 billion reduction would have &#8220;little effect &#8230; on the rate of real GDP growth,&#8221; Goldman economists concluded.<\/p>\n<p>If lawmakers do come to agreement on a spending bill in the coming weeks, it&#8217;s more likely that they will pass fewer cuts than the House-passed Republican bill because the president has already threatened to veto it and the bill doesn&#8217;t have the support of the Senate Democratic majority.<\/p>\n<p>Senate Majority Leader Harry Reid&#8217;s office was quick to tout the analysis Wednesday as proof that the Republican spending-cut agenda would be harmful.<\/p>\n<p>&#8220;Goldman Sachs issued an independent economic analysis which found that the irresponsible Republican &#8216;So Be It&#8217; spending bill would reduce U.S. economic growth. &#8230; Democrats remain committed to working with Republicans to reduce the deficit in a responsible way without hampering our economic growth and American jobs.&#8221;<\/p>\n<p><!-- REAP --><!--startclickprintexclude--><!--endclickprintexclude--><!-- \/REAP --><\/p>\n<p>A spokesman for House Speaker John Boehner, however, dismissed the analysis as wrong-headed. &#8220;This is the same outdated Washington mindset that led to claims that the trillion-dollar &#8216;stimulus&#8217; would keep unemployment below eight percent. We don&#8217;t need more ineffective &#8216;stimulus&#8217; spending &#8212; we need to get our economy growing again and help the private sector create jobs,&#8221; he said.<\/p>\n<p>House Budget Chairman Paul Ryan&#8217;s office did not immediately reply to a request for comment. The <a href=\"http:\/\/money.cnn.com\/2011\/02\/03\/news\/economy\/republicans_budget_cuts\/index.htm\">original size of cuts Ryan proposed<\/a> relative to current spending levels was $32 billion. But it got bumped up to $61 billion after the House GOP leadership was pressured by the party&#8217;s<b> <\/b>newest and most conservative members to live up to<b> <\/b>their original pledge to cut $100 billion in their first year.<\/p>\n<p>The Goldman analysis also considered the potential economic effects of a <a href=\"http:\/\/money.cnn.com\/2011\/02\/21\/news\/economy\/government_shutdown\/index.htm\">government shutdown<\/a>, which could occur if the House and Senate don&#8217;t agree to a spending bill for the rest of the year by March 4, when the current stop-gap funding measure expires.<\/p>\n<p>No more than 40,000 federal employees are likely to be furloughed, Goldman estimates, noting that should a shutdown occur for more than a few days, it could reduce GDP by 0.2% for every week of the shutdown.\u00a0<a href=\"http:\/\/money.cnn.com\/2011\/02\/23\/news\/economy\/spending_cuts_economic_growth\/index.htm?section=money_topstories&#038;utm_source=feedburner&#038;utm_medium=feed&#038;utm_campaign=Feed%3A+rss%2Fmoney_topstories+%28Top+Stories%29#TOP\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif\" alt=\"To top of page\" border=\"0\" width=\"7\" height=\"7\" \/><\/a><\/p>\n<p><!-- \/CONTENT --><!--startclickprintexclude--><!--startclickprintexclude--><br \/>\n<!--endclickprintexclude--><\/p>\n<p>First Published: February 23, 2011: 6:16 PM ET<\/p>\n<p><!--endclickprintexclude--><\/div>\n<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif\" \/><\/p>\n<p>Here is the original post:<br \/>\n<a target=\"_blank\" href=\"http:\/\/rss.cnn.com\/~r\/rss\/money_topstories\/~3\/why7Nq7bvvU\/index.htm\" title=\"GOP spending cuts would hit economy hard\" rel=\"noopener noreferrer\">GOP spending cuts would hit economy hard<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p> By Jeanne Sahadi, senior writer February 23, 2011: 6:38 PM ET NEW YORK (CNNMoney) &#8212; The more federal spending Congress slashes this year, the greater the potential drag on economic growth, according to a new analysis from Goldman Sachs. In a research note, economists at the Wall Street bank estimate that the House GOP&#8217;s spending bill &#8212; which would cut $61 billion between March and Sept. <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-279000","post","type-post","status-publish","format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>GOP spending cuts would hit economy hard - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"GOP spending cuts would hit economy hard - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"By Jeanne Sahadi, senior writer February 23, 2011: 6:38 PM ET NEW YORK (CNNMoney) -- The more federal spending Congress slashes this year, the greater the potential drag on economic growth, according to a new analysis from Goldman Sachs. In a research note, economists at the Wall Street bank estimate that the House GOP&#039;s spending bill -- which would cut $61 billion between March and Sept.\" \/>\n<meta name=\"twitter:image\" content=\"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif\" \/>\n<meta name=\"twitter:creator\" content=\"@ghanamma\" \/>\n<meta name=\"twitter:site\" content=\"@ghanamma\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"GOP spending cuts would hit economy hard\",\"datePublished\":\"2011-02-23T23:20:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/\"},\"wordCount\":513,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/\",\"url\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/\",\"name\":\"GOP spending cuts would hit economy hard - Ghanamma.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif\",\"datePublished\":\"2011-02-23T23:20:44+00:00\",\"author\":{\"@id\":\"\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#primaryimage\",\"url\":\"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif\",\"contentUrl\":\"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif\"},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/#website\",\"url\":\"https:\/\/www.ghanamma.com\/2011\/\",\"name\":\"Ghanamma.com\",\"description\":\"News In Ghana - Latest Ghana News Headlines\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ghanamma.com\/2011\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GOP spending cuts would hit economy hard - Ghanamma.com","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/","twitter_card":"summary_large_image","twitter_title":"GOP spending cuts would hit economy hard - Ghanamma.com","twitter_description":"By Jeanne Sahadi, senior writer February 23, 2011: 6:38 PM ET NEW YORK (CNNMoney) -- The more federal spending Congress slashes this year, the greater the potential drag on economic growth, according to a new analysis from Goldman Sachs. In a research note, economists at the Wall Street bank estimate that the House GOP's spending bill -- which would cut $61 billion between March and Sept.","twitter_image":"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif","twitter_creator":"@ghanamma","twitter_site":"@ghanamma","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#article","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/"},"author":{"name":"","@id":""},"headline":"GOP spending cuts would hit economy hard","datePublished":"2011-02-23T23:20:44+00:00","mainEntityOfPage":{"@id":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/"},"wordCount":513,"commentCount":0,"image":{"@id":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#primaryimage"},"thumbnailUrl":"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif","inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/","url":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/","name":"GOP spending cuts would hit economy hard - Ghanamma.com","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2011\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#primaryimage"},"image":{"@id":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#primaryimage"},"thumbnailUrl":"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif","datePublished":"2011-02-23T23:20:44+00:00","author":{"@id":""},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ghanamma.com\/2011\/02\/23\/gop-spending-cuts-would-hit-economy-hard\/#primaryimage","url":"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif","contentUrl":"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/02\/0e63013ebug.gif"},{"@type":"WebSite","@id":"https:\/\/www.ghanamma.com\/2011\/#website","url":"https:\/\/www.ghanamma.com\/2011\/","name":"Ghanamma.com","description":"News In Ghana - Latest Ghana News Headlines","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ghanamma.com\/2011\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/279000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/comments?post=279000"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/279000\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/media?parent=279000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/categories?post=279000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/tags?post=279000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}