Henry Blodget from Business Insider.....
When we cut government spending, we reduce economic growth and we put more people out of work.
When we reduce economic growth and put more people out of work, we reduce consumer spending, which, in turn, further reduces economic growth.
When we reduce economic growth and put more people out of work, we also reduce tax revenue, which increases our budget deficit.
The fund’s analysts say that “an excessively rapid pace of fiscal deficit reduction” will cost the country between 1.25 and 1.75 percent points of GDP growth this year, and it now projects just 1.9 percent total growth for 2013.
GOP Speaker of the House, John Boehner....
Speaker John A. Boehner of Ohio, pushing back against White House demands for no-frills legislation on the federal borrowing cap, is calling for another round of spending cuts beyond the sequester as part of any agreement to raise the debt limit.
“I believe that if we’re going to increase the debt limit, there ought to be cuts and reforms in place that are greater than the increase in the debt limit,” Boehner said in an interview Tuesday on ABC’s “Good Morning America.”
Cutting government spending (austerity) during lack-of-demand recessions, recessionary periods which are accompanied by low interest rates and high unemployment.......only makes the lack-of-demand, high unemployment problems worse.
Business owners, still today, explain that their number one concern moving forward is lack of consumer spending.....demand for goods and services is simply not strong enough. In the Bush financial collapse, too many Americans lost their jobs, homes, medical care, pensions, and net worth in the ripple affect. Consumers, still reeling from those blows, do not have enough disposable income, or credit, to robustly increase demand for goods and services...aka known as "growth."
The fact that Boehner and his Budget Bunglers are still calling for more spending cuts in light of the information above....proves beyond a shadow of a doubt that House Republicans want America's economy to do poorly. House Republicans.....it is now beyond dispute....are purposely seeking to damage the economy as long as Obama is president and Democrats control the Senate.
By doing damage to the national economy, Republicans hope to sour voters on Democratic candidates in the 2014 midterm and the 2016 general election. In fact, at the beginning of the 2012 campaign, which started in 2011, Republicans were boasting about how a president with such high unemployment numbers could never be re-elected. Mitt Romney's entire campaign focus in the beginning was to remind voters about the terrible, terrible economy President Obama had overseen. An economy which House Republicans had been sabotaging with austerity measure ransom notes and hostage taking for four straight years.
While the private sector has added jobs steadily for the last 3 1/2 years, public sector employment has been trimmed by 600,000 over the same period. That is not an accident. The difference in the current economic period and past ones is that government always agreed in the past to become the "spender of last resort" during high unemployment, low demand recessionary periods. But that was before Republicans began plotting to do damage to the economy, and to working American families, for what they hoped would become political gain.
Because of this new paradigm, House Republicans, in particular, no longer should be considered to be a "loyal opposition." Instead, House Republicans have become the enemy of all American families. Purposely damaging the national economy through austerity measures they knew would harm American families and keep unemployment high....just because they thought doing so would sweep them into majority power.....is a high crime against the U.S. and it's citizens.
Now news comes of another insurgency strike against the American people from House and Senate Republicans.....
Running out of time and options, conservatives are exploring new ways to corner Congress into shutting down the government this fall unless Obamacare is defunded.
“We have one last chance to stop this if the White House won’t cooperate, and that’s through our budgeting process,” said Sen. Marco Rubio (R-FL),.... “Some will say, ‘Well, that’s crazy. You are going to shut down the government over Obamacare?’ No, what’s crazy is moving forward with this thing.”
Utah-elected, enemy of American working families, Senator Mike Lee, in a Benedict Arnold moment..."is escalating the push by circulating a letter promising not to vote to fund the government after Sept. 30, when the lights are set to go out, if Obamacare is not fully defunded. It has reportedly been signed by 15 Republican senators."
Critics might suggest that all of this is simple political posturing by Republicans, threats that Republicans know are hollow.
How did all that "only political posturing" work out August, 2011......when these same "only posturing" Republicans caused a downward spike in the economy and a downgrade in the nation's credit rating?
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