Monday, November 26, 2012

The Republi-CON 'Balanced Budget, Less Government' Fraud

UPDATE:  "For years, deficit scolds have held Washington in thrall with warnings of an imminent debt crisis, even though investors, who continue to buy U.S. bonds, clearly believe that such a crisis won’t happen; economic analysis says that such a crisis can’t happen; and the historical record shows no examples bearing any resemblance to our current situation in which such a crisis actually did happen."  Read The New York Times, Fighting Fiscal Phantoms.  

"So it turns out that federal spending is important to the economy after all. . .

Republican lawmakers demanded the cuts last year as part of their brinkmanship over the debt ceiling, and business lobbies have generally supported slashing the deficit. But now that the cuts are imminent, corporate executives seem to have realized that the last thing the economy needs is a large budget cut across the board. 

They’re right about that. According to the Congressional Budget Office, the combined impact of the automatic spending cuts plus the scheduled expiration of the Bush-era tax cuts — the so-called fiscal cliff — would cause the economy to contract in the first half of 2013. Some business leaders seem to think the solution is for Congress to act as soon as possible to avert the spending cuts and to extend all of the tax cuts. That would avoid an economic downturn next year, but it would also mean no progress toward long-term deficit reduction"

 Read The New York Times, Business Fears the Fiscal Cliff

Proving once again "Keynes’s basic point: slashing spending in a depressed economy depresses that economy further

It also proves that the Republi-cons are frauds.

BTW, since the 2010 elections I've been waiting for the promised balanced budget, but don't hold you breath because the Republi-CONs Con the Tea Party, there'll be no $100 billion budget cut, and let's admit the obvious, the Republi-CONs are not serious about deficits.