Boehner's Spending Plan Is Harmful, And Is Being Rejected

Well, them liberal-bastards from Goldman-Sachs say that the House's cuts will hurt the economy. How bad?

NEW YORK (CNNMoney) -- The more federal spending Congress slashes this year, the greater the potential drag on economic growth, according to a new analysis from Goldman Sachs.

In a research note, economists at the Wall Street bank estimate that the House GOP's spending bill -- which would cut $61 billion between March and Sept. 30 -- could reduce economic growth by 1.5 percentage points to 2 percentage points in the second and third quarters.

Last week, the Federal Reserve forecast the economy would grow between 3.4% and 3.9% this year.

The drag would be less if lawmakers decide to cut only $25 billion, which Goldman believes is more likely.

Goldman estimates a 1 percentage point drop in growth in the second quarter but adds that "would quickly fade over the next two quarters as spending stabilizes at a lower level." And by year-end, a $25 billion reduction would have "little effect ... on the rate of real GDP growth," Goldman economists concluded.

Yeah, them damn liberals, they don't know what they're talking about. I find that $25 billion number to be interesting. Where did they get it? Interesting.

Meanwhile, John Boehner has offered a compromise- take his plan. So the Democrats rejected this "compromise." They had a lot to say in return:

The House bill could result in 870 fewer border patrol agents guarding the nation’s borders, Democrats warn. A group of three Democratic senators called the GOP cuts a “giant step backward in securing our border” and say that they could effectively repeal the emergency bipartisan border security bill passed last Congress. The proposed cuts would also reduce funding for border security fencing, infrastructure and technology by $272 million, the Democrats add.

Democrats already have proposed $41 billion in cuts and "are eager to sit down with Republicans to find more," Summers adds.

"But Republicans are refusing to negotiate," he says. "Instead of working with Democrats to find more cuts, they are threatening to shut down the government and drawing lines in the sand. Their recklessness could send our economy into a tailspin. It is time for cooler heads to prevail in the House, and for Republicans to come to the table.”

Democrats have warned that a government shutdown could damage the slow, fragile recovery of the U.S. economy.

John Boehner is an awful Speaker. So far, he's been incapable of passing serious legislation. His plan is a joke, and it won't help this country. The Democrats should refuse it, even if that means he forces the government to shut down. This is worth fighting for.