According to Moody's chief economist Mark Zandi -- who the Washington Post reports "has advised both political parties" -- Republican plans to slash government spending will impact the GDP in such a way that would eliminate hundreds of thousands of jobs this year and the next.
From the report:
The House Republicans' proposal would reduce 2011 real GDP growth by 0.5% and 2012 growth by 0.2 percentage points This would mean some 400,000 fewer jobs created by the end of 2011 and 700,000 fewer jobs by the end of 2012.
...the Moody's report is the second outside report in recent days to find that the Republican's slash-and-burn spending strategy (necessitated in part by pressure from the GOP's tea party wing) will slow the economy dramatically while it's still struggling to recover from the 2008 financial crisis.
ABC News reported last week on a confidential Goldman Sachs report which found the Republican budget "would be a drag on the economy, cutting economic growth by about two percent of GDP."
MOODY'S
ABC NEWS
