[Proposed Congressional] Spending Cuts Would Kill 500,000 Jobs - Common Dreams

An analysis released Wednesday by the nonpartisan Congressional Budget Office estimates that House Republicans’ proposed cuts to federal spending for the coming fiscal year would kill 500,000 jobs and hinder economic growth, findings that Democrats seized on as further evidence of the GOP’s “willful disregard for the wellbeing of Americans.”

The CBO examined the potential economic impacts of Republicans’ Limit, Save, Grow Act (LSGA), legislation that the GOP-controlled House passed in late April amid a debt ceiling crisis that the party manufactured.

The White House and GOP leaders later struck a deal that included caps on discretionary spending for the next two fiscal years, but Republican appropriators have spent the past several weeks proposing cuts that are more in line with the LSGA, which took aim at Medicaid, federal food assistance, and other critical programs.

According to the CBO, the Republican bill’s far-reaching spending cuts would result in 0.5% lower GDP growth next year, which “would correspond to reductions in employment.” The CBO’s analysis indicates that roughly half a million workers would lose their jobs in 2024 if the LSGA became law.

The analysis comes as Republicans are pushing ahead with government funding bills that would slash spending on infrastructure, education, climate action, the Social Security Administration, and more, proposals that Democrats oppose. The federal government could shut down at the end of September if Congress doesn’t pass funding legislation.

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Common Dreams

Organizations: Republican Party (GOP) Congressional Budget Office White House United States Social Security Administration (SSA) 

Tags: Economics Legislation Climate Change Education Debt Ceiling 

Type: Headlines