Mitt’s “Immediate” Spending Cap…Really?

September 6th, 2011 at 8:29 pm

I plan to give Mitt Romney’s new jobs plan a careful read.  He has some serious economists with lots of government experience working for him now (Glenn Hubbard, Greg Mankiw), so let’s see what’s he’s bringin.’

But it is hard not to jerk the knee in attack when you read something like this:

“Mitt Romney will immediately move to cut spending and cap it at 20 percent of GDP.”

According to CBO, that would reduce government spending in the 2012 economy by 3% of GDP, or $476 billion.  I truly can’t imagine any reasonable economist of any political stripes who doesn’t believe that would turn an already weak economy back into a recessionary economy.

Glenn…Greg…what say you?

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8 comments in reply to "Mitt’s “Immediate” Spending Cap…Really?"

  1. tom says:

    He’s is just upping the 18% cap from the hard core poverty and destitution brigades, bringing us poverty on generous terms, the milk of human kindness.


  2. John B. says:

    As Jared checks out Romney’s plan, let’s hope he can explain the graph on page 16 which shows Obama caused the Great Recession’s massive job losses from “2007-2009.”
    http://thinkprogress.org/politics/2011/09/06/312792/romney-chart-falsely-blames-obama-for-job-losses-in-2007-2008/

    Kind of hard to put any faith in a “plan” that doesn’t even get the facts right.


    • joe says:

      It’s interesting that all those jobs added during the 2001 recovery were government jobs. During the first 2.5 years of Bush & the Republicans, the private sector shed almost twice as many jobs.

      Total private Jan 2001 – August 2011

      http://data.bls.gov/timeseries/CES0500000001

      Private jobs Jan 2001 111.634 million
      Private Jobs August 2003 108.266 million
      3.368 million private sector jobs lost

      Private jobs Jan 2009 110.981 million
      Private Jobs August 2011 109170 million
      1.811 million private sector jobs lost

      Bush killed 1.578 million more private sector jobs during the first 2.5 years.


    • Al W. says:

      2007 to 2009 wasn’t Obama’s fault, but there was a Democrat controled congress and senate during that time span.


  3. joe says:

    When your base thinks the earth is 6000 years old and humans walked with dinosaurs, 500 billion in spending cuts when unemployment is 9.2% and 10 year bonds are selling at negative real interest rates makes perfect sense.


  4. Lawrence Berg says:

    This is an American Presidential campaign. Since when did facts matter to the GOP?


  5. Ron E. says:

    They’d say, “Don’t worry about that. Once Romney becomes President, he’ll forget all about the spending cuts and just pass the tax cuts.”


  6. Jeff H says:

    Mitt Romney’s economic plan=#notmeanttobeafactualstatement


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