Actually, Zandi analysis is that the economy would've been better off without that decrease in federal spending...which would have resulted in more revenue. Austerity isn't all it's cracked up to be.
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In a report released on Monday, Macroeconomic Advisers estimated that 1.2 million more Americans would be working today if Congress had kept discretionary spending at the levels that were in place in 2010.
The forecasting firm estimated that Washington's erratic behavior had also driven up unemployment by a further 900,000 jobs.
Zandi estimates the fiscal austerity has cost 2.25 million jobs. Without those measures, the unemployment rate would stand at 6.3 percent now rather than 7.7 percent, he says.
br In a report released on Monday, Macroeconomic ... (
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