TO CLAIM CUTTING FEDERAL SPENDING WILL COST JOBS IS NONSENSE
The head of the Obama White House National Economic Council, Gene Sperling, who is a lawyer, has been claiming that "all economists" agree that sequestration will cost 750,000 jobs. I am an economist with a doctorate from Columbia University, and I don't agree.
The fact is that most classical and Austrian school economists also don't agree (including many Nobel laureates), because they understand that U.S. government spending is well above the optimum for economic growth and job creation, which means that less government spending will create more jobs, not fewer.
The Republicans should use the Continuing Resolution and the budget cap to force a further slowdown in the growth of government, and thus, less federal spending as a share of GDP. This should result in even more private-sector job creation, provided that there is restraint by the administration on all the new job-killing regulations.


