Pimco forecasts higher unemployment, lower growth, more inequality as a result of cuts

[highplainsdem]

Found via a tweet from Matt Yglesias that David Corn retweeted:

mattyglesias mattyglesias
by DavidCornDC
Pimco chief forecasts higher unemployment, lower growth, more inequality as a result of cuts: http://ygl.as/nquzxG #winthefuture
54 minutes ago


NY Times article that link goes to:

http://www.nytimes.com/2011/08/01/us/politics/01econ.html

From Spending to Cuts, While the Economy Stalls
By BINYAMIN APPELBAUM and CATHERINE RAMPELL
Published: July 31, 2011


WASHINGTON — The nation’s political leaders agreed on Sunday to spend and invest less money in the American economy, a step that economists said risks the reversal of a faltering recovery, in the hope of improving the nation’s long-term prosperity.

The emerging outlines of a deal to cut spending by at least $2.4 trillion over 10 years, with a multibillion-dollar down payment later this year, would complete an about-face in the federal government’s role from outsize spending in the immediate aftermath of the recession to outsize cuts in the future.

Last week brought the disconcerting news that the economy grew no faster than the population during the first six months of the year, in part because of spending cuts by state and local governments. Now the federal government is cutting, too.

“Unemployment will be higher than it would have been otherwise,” Mohamed El-Erian, chief executive of the bond investment firm Pimco, said Sunday on ABC. “Growth will be lower than it would be otherwise. And inequality will be worse than it would be otherwise.”

-snip-

[nadinbrzezinski]

1. Yep classic austerity

absolutely

[Parker CA]

2. One step closer for the GOP in achieving their goal of a ruined economy and making Obama a 1 termer.

[Doctor_J]

5. And the president's biggest fans are applauding it

truly amazing.

[abelenkpe]

3. K & R nt

[47of74]

4. Failed state, here we come!