Of course they will. What won't be a surprise either is if the GOP then blames it all on the Democrats. What would then be even less surprising would be the Democrats making another quiet attempt to push back before crumbling as they so often do. The problem today is that because the Democrats (especially the White House) keep repeating the same Republican language, they are adding fuel to the fire. Even the "best case" scenario of a deal between the White House and the GOP House will cut the growth by 1% of GDP. ABC News:
A confidential new report prepared by Goldman Sachs for its clients says spending cuts passed by the House of Representatives last week would be a drag on the economy, cutting economic growth by about two percent of GDP.
“Under the House passed spending bill [which cut spending by $61 billion],” says the report, which was obtained by ABC News, “the drag on GDP growth from federal fiscal policy would increase by 1.5pp to 2pp in Q2 and Q3 compared with current law.”
More likely, the report says, is a deal to cut spending by $25 billion this year, followed by a cut of $50 billion next year.NOTE FROM JOHN: It's time for the President himself to go public and say that there will be NO cuts this year, period, lest we send the economy back into a recession.
Even those more modest spending cuts, Goldman Sachs predicts, will cut economic growth rates by one percent of GDP.
