Goldman, AP to Lawmakers: Keep Spending Like Mad or Economic Growth Will Suffer
Thursday, an odd warning emanated from the halls of the supposedly esteemed investment firm known as Goldman Sachs: If Uncle Sam spends $61 billion less during the second half of the current fiscal year, and ends the year with “only” $3.758 trillion in spending instead of the administration's anticipated $3.819 trillion , economic growth will be seriously harmed. Yesterday, similar nonsense was put forth by Jeannine Aversa at the Associated Press in reaction to the government's report that economic growth during the fourth quarter was revised down to 2.8% from 3.2%, when experts (like the geniuses at Goldman) had expected the number to come in at 3.3%. The headlined whine: “State and local budget cuts are slowing US economy.” First, here is the Financial Times report carried at CNBC reporting on Goldman's federal spending gibberish: Goldman Sees Danger in US Budget Cuts
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on February 26, 2011. Filed under