JUST IN: Analysis by Mark Zandi of Moody's Analytics says Kevin McCarthy's spending-cut plan "would meaningfully increase the likelihood" of a recession and result in 780,000 fewer jobs by the end of 2024 compared w a clean debt limit scenario. Link: moodysanalytics.com/-/media/articl…
"In the Clean Debt Limit scenario, real GDP is expected to grow 2.25% in the year compared with 1.6% if Speaker McCarthy’s legislation becomes law," the Moody's report says.
@LauraLitvan @mehdirhasan I don’t understand. What is wrong with cutting government spending. Al Gore campaigned on cutting government waste in 2000.
@LauraLitvan @Pete_Broussard He has economist that just say “it’ll be bad”. I’m missing the actual case for the decline in GDP. Recession blaming aside, what else am I missing? If we are dependent on unending government spending and a never ending debt limit, isn’t a recession inevitable anyway?
@LauraLitvan Back to the 'drawing board' @SpeakerMcCarthy !
@LauraLitvan How about we not spend ONE DIME more than what we take in. NOT ONE What's the analysis on that????
@LauraLitvan I’ve been watching Zandi’s commentary for years. He consistently advocates that higher government spending and taxation is good for the economy. If he was right, the Soviet Union or Western Europe would be the age’s economic superpower, which is obviously not the case.
@LauraLitvan PLEASE READ the report! This is such a pathetic misrepresentation of it. They want Biden to agree to less non-defense, and likely non-VA discretionary spending. Like Biden’s recent pledge of $500mil to curb Amazon deforestation. & says economists expect recession regardless
@LauraLitvan Well, You did provide a link. I can appreciate that
@LauraLitvan Does this mean we can have our emergency food allotments restored? What does Ai think?