Network News

X My Profile
View More Activity
About Felicia Sonmez  |  twitter  On Twitter: @2chambers  |  RSS Feeds RSS Feed  |  E-Mail Felicia  |  Articles
Posted at 4:07 PM ET, 02/28/2011

House Republicans dispute report that federal spending plan would cost jobs

By Felicia Sonmez

House Majority Leader Eric Cantor (R-Va.) on Monday pushed back against a report projecting that House Republicans' proposed government funding measure would result in significant job losses, saying that the report does not distinguish between private- and public-sector jobs.

In disputing the report, Cantor also took aim at its author, Moody's Analytics chief economist Mark Zandi, as "a chief proponent of the Obama-Reid-Pelosi stimulus bill that we now know has failed to deliver on the promise of making sure unemployment did not rise above eight percent."

"Is he talking about government jobs? And if so, why is the government hiring people it can't afford to pay?" Cantor asked at his weekly roundtable with reporters. "This is obviously an unsustainable situation and something that we're trying to address through our approach in the [funding resolution] we passed two weeks ago."

In the report, released Monday, Zandi projects that House Republicans' proposal to cut $61 billion across federal agencies over the next seven months would reduce economic growth by half a percentage point in 2011 and one-fifth of a percentage point in 2012, resulting in 700,000 fewer jobs created by the end of next year.

Cantor on Monday also contended that Zandi, who has advised members of both parties, has said that the stimulus "somehow saved states from a terrible fiscal and budget woes," when in fact the opposite is true.

"When Virginia received, I think it was a little over $3 billion in the winter of '09 to plug a budget hole, what happened the subsequent year, last year, was that the state had to go back and cut the positions and the programs that that $3 billion paid for, essentially leaving us with the debt in the prorated amount that Virginia could claim was belonging to it," Cantor said.

Democrats have touted Zandi's analysis in making the case that the House Republican plan would do more economic harm than good. House Minority Whip Steny Hoyer's (D-Md.) office sent out a release Monday calling the report "more bad news" for Republicans after a report last week by a Goldman Sachs economist projecting that the House GOP plan could reduce the country's economic growth by as much as two percentage points.

House Republicans have pushed back with an analysis by Stanford University economist John B. Taylor that they said debunked both Zandi's report and the Goldman Sachs analysis.

As the battle over a longer-term government funding resolution continues to intensify, both sides appear to be reaching agreement on a shorter-term measure to keep the government funded through March 18.

The White House on Monday gave its blessing to the two-week plan but warned Congress against keeping the government funded through a series of short-term measures.

"If we keep returning to this process every couple of weeks, that will be bad for the economy, because of the uncertainty it creates and the tension around that," White House Press Secretary Jay Carney said.

Also at his pen-and-pad Monday, Cantor said that he stood by House Speaker John Boehner's (R-Ohio) statement that House Republicans will challenge Obama's recent call for the Justice Department to no longer defend the Defense of Marriage Act, probably before the week is out.

"I do believe that this is a case that is distinguishable on its merits, and to have ... the president take the position that he's not defending the law of the land is something very troubling, I think, to most members of the House," Cantor said.

By Felicia Sonmez  | February 28, 2011; 4:07 PM ET
 
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Planned Parenthood, Susan B. Anthony List put up dueling ads
Next: Northeastern senators make play for high-speed rail funds rejected by Florida

Comments

Well, gee, what did you expect them to say?
"Well, yes, of course more people will be thrown out of work. That many more votes for us in the next election! All they have to do is turn on their TV to FOX News, and they'll see that it's all the president's fault."

Does anyone still believe that the GOP gives a rat's rear about the working people of America? Unless you are a million-dollar donor to Republican candidates, you just DON'T COUNT. And as long as they can keep distracting us with noise about deficits and DOMA and repealing "Obamacare" and other nonsense, they are only too happy to kill more jobs. Any improvement in the economy might be seen as a modest success for this administration's economic policies, and we can't have that, now can we?
"I want this president to fail."---Rush Limbaugh.
"Our number one priority is to make sure he is a one-term president."---Mitch McConnell.
Anyone who believes Boehner when he talks about responding to the will of the American people is not paying attention. He is responding to the will of the Koch brothers and their TeaParty followers, and to the gazillionaires who OWN the GOP. Rush, and O'Reilly, and the rest are millionaires many times over. Think they care about whether or not you or I have a job? Think again.

Posted by: sailorashore | February 28, 2011 8:48 PM | Report abuse

CBO disagrees? Blame CBO.
Zander disagrees? Blame Zander.
Pattern? You Betcha!

Posted by: OldUncleTom | February 28, 2011 9:49 PM | Report abuse

Repubs dont care about working people, just the rich. And this BS about unions is just to weaken democratic base. When they got Citizens United passed they said coporations and unions could spend unlimited funds electing their preferred candidates. So then they make full court press to get rid of the only people standing up for the working class in this country by divide and conquer . But guess who will still be able to elect who they want? The Koch brothers and there mega wealthy buddies. Wise up America. Im talking to you Tea party, your making fools of yourselves supporting the rich over the working man.

Posted by: jimbobkalina1 | February 28, 2011 11:44 PM | Report abuse

Government mandates and spending often has a varying impact on taxpayers, as well as unintended consequences such as influencing unemployment and the housing market. Additional consumer credit analysis and Moody’s Analytics’ Mark Zandi commentary is available at:
http://www.moodysanalytics.com/Products-and-Solutions/Economic-Consumer-Credit-Analytics/Economic-Research/Global-Macro-Dismal-Scientist.aspx

Posted by: ma-marketing | March 1, 2011 9:36 AM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.




characters remaining

 
 
RSS Feed
Subscribe to The Post

© 2011 The Washington Post Company