I have some comments at MoneyWatch on today's news that new claims for unemployment insurance fell below 400,000:
Update: The post includes a graph from Macroadvisors giving their forecast of how the Boehner and Reid plans will slow economic growth. Brad DeLong describes their forecast:
Congress Debates Making the Economy Weaker: Macro Advisers:
Macroadvisers: Dueling Debt Proposals: How Much Fiscal Drag?: The House and the Senate have advanced separate but dueling plans to cut federal spending as a way to break the current impasse over raising the debt ceiling. Both plans would initially limit spending through 2021 with caps on discretionary budget authority while promising to convene commissions to identify more savings later…. CBO has now scored both of these plans relative to its March adjusted baseline…. The cuts in primary spending (that is, excluding interest payments) in the House (or Boehner) plan cumulate to just $715 billion ($851 billion including interest). The cuts in primary spending in the Senate (or Reid) plan cumulate to $1.8 trillion ($2.2 trillion including interest). The cuts in the Senate plan are so much larger because that plan quickly cuts budget authority for the wars….
We estimate that the Reid plan would slow GDP growth (again, statically) by about ¼ percentage point on average from fiscal year (FY) 2012 through FY 2015, with the peak effect being almost ½ percentage point in FY 2013.
We estimate that the Boehner plan would slow GDP growth by only about 0.1 percentage point on average over the same period, with the peak effect being a little over 0.2 percentage point in FY 2014.
Can't anybody play this game?