The liberal freak out over debt limit spending cuts

[DarrinS]

http://washingtonexaminer.com/blogs/beltway-confidential/2011/08/liberal-freak-out-over-debt-limit-spending-cuts





Slate's David Weigel calls it The Democratic Unemployment Act. The New York Times worries From Spending to Cuts, While the Economy Stalls. The Huffington Post reports Durbin: Debt Deal Will Be The Death Of Keynesian Economics. All three of these stories worry that the massive spending cuts in the debt limit deal will hurt the economy. But what none of these stories report, unfortunately, is just how much government spending actually gets cut this year.

According to the Congressional Budget Office (CBO) score of the legislation, the debt limit deal will cut $25 billion in 2012 and $47 billion in 2013. $25 billion may sound like a lot, but the federal government spends almost $300 billion a month and will spend $3.7 trillion in 2012. $25 billion also amounts to less than .7 percent of all government spending and less than .2 percent of GDP.

Hard-core Keynsian Suzy Khimm claims that a 1 percent of GDP cut to government spending reduced GDP by .5 percent in two years. So at .2 percent of GDP, by Keynsians own numbers, the debt limit deal will lower GDP by .1 percent. That is a rounding error at best.

[ElNono]

Well, the theory is that the economy is on a downward spiral. Basically, spending the same money we're spending now for the next two years won't keep the current situation stable, but will cause it to progressively degrade. Time will tell.

[Wild Cobra]

Well, the theory is that the economy is on a downward spiral. Basically, spending the same money we're spending now for the next two years won't keep the current situation stable, but will cause it to progressively degrade. Time will tell.
There is no way to keep the economy stable without returning good paying blue collar jobs back to our shores.

Mark this post and my words for future comparisons of manufacturing jobs, and the change in US economy.

[ElNono]

There is no way to keep the economy stable without returning good paying blue collar jobs back to our shores.

Mark this post and my words for future comparisons of manufacturing jobs, and the change in US economy.

Those jobs ain't coming back if we can't force China to stop manipulating their currency to keep standards of living super low. And, the US isn't lowering the living standards to match theirs.

[Wild Cobra]

Those jobs ain't coming back if we can't force China to stop manipulating their currency to keep standards of living super low. And, the US isn't lowering the living standards to match theirs.
That's why we need tariffs.

Eventually, keeping things the same in this department, will force our standard of living down even farther.

It already has!

[ElNono]

That's why we need tariffs.

Eventually, keeping things the same in this department, will force our standard of living down even farther.

It already has!

If you put tariffs, then the Chinese won't lend us for pennies on the dollars.

And when you say our standards of living going down, compared to the Chinese, I gather you have no idea what you're talking about, right?

[Wild Cobra]

If you put tariffs, then the Chinese won't lend us for pennies on the dollars.

And when you say our standards of living going down, compared to the Chinese, I gather you have no idea what you're talking about, right?
I don't care about how they are doing dipshit. I care about how we are doing.

[ElNono]

I don't care about how they are doing dipshit. I care about how we are doing.

Thanks for letting us know you have no idea what you're talking about.

[ChumpDumper]

High tariffs sure worked to end the Great Depression.

[boutons_deux]

We can't put tariffs on stuff from China because the UCA is now dependent on China. Putting tariffs on stuff from China would never be allowed by the UCA.