Goldman Sachs Analysis: GOP Budget Would Slow Economy

By
Photo: iStockphoto

Here's the problem with making big cuts to government spending while simultaneously trying to revive the economy: According to a report by a Goldman Sachs economist, the $61 billion in cuts passed by the House last week (which are unlikely to make it through the Senate) would reduce GDP growth by 1.5 percent to 2 percent over the next two fiscal quarters. Was that the mandate from voters? "Slow down our already sluggish recovery"? We think you got it backwards you guys! [Note/ABC News]