Republican Budget-Cut Plan Would Cost 700,000 Jobs, Zandi Says

House Republicans’ $61 billion budget-cutting plan would cost 700,000 jobs, according to a report likely to inflame the debate over the U.S. government deficit.

The measure would reduce real economic growth this year by 0.5 percentage points and by 0.2 percentage points next year, resulting in 700,000 fewer jobs by the end of 2012, said Mark Zandi, chief economist for Moody’s Analytics. He said budget-cutters should wait until the U.S. economy is stronger, saying Republicans “would be taking an unnecessary chance with the recovery.”