Republicans, Federal Reserve Clash on Cuts’ Cost to Jobs

[Godhumor]

Source: Bloomberg

McCarthy, of California, the third-ranking House Republican, said this week the spending cuts won’t cost the nation jobs, pointing to Bernanke for support. Within hours, Bernanke testified on Capitol Hill that the budget reductions may lead to the loss of 200,000 jobs.

The Fed chief said the House Republican plan to slash $61 billion from 2011 government spending could also subtract “a couple of tenths” of a percentage point from U.S. economic growth over several years.

“We need to address the deficit; that’s very important,” Bernanke told the House Financial Services Committee in a March 2 hearing. “But I think it would be most effective if we did that over a timeframe of 5 or 10 years and not try to do everything immediately.”

Bernanke’s words will pose a danger for Republicans, who say their top priorities are jobs and cutting spending, if voters see them in conflict with the head of the central bank.


Read more: http://noir.bloomberg.com/apps/news?pid=20601087&sid=arGQcP5Z3sWs&pos=9

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I wonder how long Republicans will be able to pretend they are for employment growth when they have yet to introduce a single piece of legilations that would add any net job increases.

[JDPriestly]

1. This will be interesting.

Employment is increasing ever so slightly. If cuts come now, and employment numbers fail to improve or worsen, we will know who is right about the economic effects of cutting deficits. Horrible to determine something like that at the cost of the futures of so many wonderful young people.

[Bandit]

2. I thought the Republican response to their causing job loss was

"So Be It"