Zandi, an architect of the 2009 stimulus package who has advised both political parties, predicts that the GOP package would reduce economic growth by 0.5 percentage points this year, and by 0.2 percentage points in 2012, resulting in 700,000 fewer jobs by the end of next year.
His report comes on the heels of a similar analysis last week by the investment bank Goldman Sachs, which predicted that the Republican spending cuts would cause even greater damage to the economy, slowing growth by as much as 2 percentage points in the second and third quarters of this year…
On Monday, Republican aides were particularly critical of Zandi, a registered Democrat who advised Republican John McCain’s 2008 presidential campaign but became one of the most influential advocates for government economic stimulus a year later.
“The fact that a relentless cheerleader for the failed ‘stimulus’ – which the Democrats who run Washington claimed would keep unemployment below eight percent – refuses to understand that ending the spending binge will help the private sector create jobs is sad, but not surprising,” said Michael Steel, a spokesman for House Speaker John A. Boehner (R-Ohio).
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