Saturday, February 2, 2013

The austerity trap and government spending

Ed Shultz reports on the GDP being down 0.1% in the 4th quarter after growing for the last 14 quarters. Why the downturn? Republican-induced government spending cuts. It wasn't a result of the private sector, which is picking up. The housing market is recovering. Consumer spending, which comprised 2/3 of the GDP is also on the rise. But government spending was way down in the last quarter. And yet the regressives keep insisting that cuts in government spending spur growth.

Yeah, like Greece, Italy and Spain? That kind of austerity has had devastating effects on their economies and they want to do it here too? And the regressives are again threatening to let the sequestration cuts take effect if they don't get their way of cutting into social programs like Medicare and Social Security? To paraphrase an old saying, they will cut our throats to spite their failed ideology. Don't let it happen people, get busy and let your voice be heard.

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