Romney: Spending cuts slow economic growth

[Political Junky]

Oops, sometimes the truth slips out.

First Read - Romney: Spending cuts slow economic growth

Mitt Romney said Tuesday that cutting spending slows growth in the economy -- a rhetorical slip more akin to an argument a Democrat might make than a Republican.
Speaking in Shelby Township, MI, the former Massachusetts governor took a question about the Simpson-Bowles fiscal commission empaneled by President Obama to address the nation's deficit and debt issues. In his response, he said that addressing taxes and spending issues are essential.
"If you just cut, if all you're thinking about doing is cutting spending, as you cut spending you'll slow down the economy," he said in part of his response. "So you have to, at the same time, create pro-growth tax policies."
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[Missourian]

Thanks, PJ...but I have this one covered:


http://www.usmessageboard.com/politics/209393-fiscal-conservatives-bash-romney.html

 

[J.E.D]

[ame=http://www.youtube.com/watch?v=D2MPoqqzwdY]Jim Carrey "Really!" (from Ace Ventura) - YouTube[/ame]

 

[waltky]

Employment to slow down if growth doesn't pick up...

US Federal Reserve stays concerned over growth
3 April 2012 - The Federal Reserve, headed by Ben Bernanke, has not changed monetary policy in quite a while

The US central bank is concerned that the gains in employment recently will dissipate if growth does not pick up. Some at the Federal Reserve "perceived a non-negligible risk that improvements in employment could diminish as the year progressed," said the minutes of the March meeting. In March, the Fed decided again to keep interest rates at record lows until at least late 2014.

The US unemployment rate is down to 8.3%, the lowest for three years. Employment has been rising for the past six months, but the jobless rate has been stuck above 8% since early 2009. The number of new jobs being created has been consistently above 200,000 in each of the past three months, fuelling hopes that the US recovery is gathering pace.

At the March meeting, the Fed's staff revised the central bank's near-term forecast for real gross domestic product (GDP) growth upwards slightly. "Labour market conditions had continued to improve and unemployment had declined in recent months," the Fed said. "But almost all members saw the unemployment rate as still elevated relative to levels that they viewed as consistent with the committee's mandate over the longer run."

BBC News - US Federal Reserve stays concerned over growth

 

[DontBeStupid]

I like how the only time Romney is honest is when it's on accident.

 

[rdean]

Romney:

"I got the chance after I lost to John McCain last time, to go over to --
that was the good part of losing -- I got to go to the Olympic Games in
China. It's pretty impressive over there how quickly they can build
things, how productive they are as a society. You should see their
airport compared to our airports, their highways, their train systems.
They're moving quickly in part because the regulators see their job as
encouraging private people. It's amazing. The head of Coca-Cola said the
business environment is friendlier in China than in America. And that's
because of the regulators. That's because of government."

Mitt Romney Praises China Regulators ?

Romney loves China. Funny, Republicans talk about how wonderful it is when other countries invest in their own infrastructure, but do everything they can to block that here. Seems billionaires will spend it better. They are obviously a better investment than roads.

 

[imbalance]

Oops, sometimes the truth slips out.

First Read - Romney: Spending cuts slow economic growth

Mitt Romney said Tuesday that cutting spending slows growth in the economy -- a rhetorical slip more akin to an argument a Democrat might make than a Republican.
Speaking in Shelby Township, MI, the former Massachusetts governor took a question about the Simpson-Bowles fiscal commission empaneled by President Obama to address the nation's deficit and debt issues. In his response, he said that addressing taxes and spending issues are essential.
"If you just cut, if all you're thinking about doing is cutting spending, as you cut spending you'll slow down the economy," he said in part of his response. "So you have to, at the same time, create pro-growth tax policies."
<more>

Under our post-1971 organization of monetary and economic systems, this is indeed the case. The fundamental balancing equation of reserve banking accounting is:

(Government Spending - Taxes) = (Private Savings - Private Investment) - Net Exports

Now unless you want to change from fiat currency to a controvertible hard currency, government spending is the source of all new US financial assets used and organized by the private sector to create private wealth. If the economy is a bathtub and financial assets are the water; the faucet is government spending and the drain is federal taxation. If the bathtub overflows you have inflation and if it has too big a leak you get stagnation.

 

[imbalance]

Romney:

"I got the chance after I lost to John McCain last time, to go over to --
that was the good part of losing -- I got to go to the Olympic Games in
China. It's pretty impressive over there how quickly they can build
things, how productive they are as a society. You should see their
airport compared to our airports, their highways, their train systems.
They're moving quickly in part because the regulators see their job as
encouraging private people. It's amazing. The head of Coca-Cola said the
business environment is friendlier in China than in America. And that's
because of the regulators. That's because of government."

Mitt Romney Praises China Regulators ?

Romney loves China. Funny, Republicans talk about how wonderful it is when other countries invest in their own infrastructure, but do everything they can to block that here. Seems billionaires will spend it better. They are obviously a better investment than roads.

Yes, the too fabulous leftist myth that Republicans are universally opposed to infrastructure. To clarify; because the right prefers that federal budget $$$ appropriated for infrastructure spending actually be directed towards infrastructure projects rather than laundered elsewhere, that in no way suggests the right is opposed to the bipartisan concept of infrastructure investment and the economic value it perpetuates within a system.

[

CHARTS: The Alarming Collapse Of US Infrastructure Spending​

Mr. Obama got his unprecedented stimulus bill passed in large part because he promised "shovel-ready" infrastructure projects that as it turned out "weren't so shovel-ready." And had all the promised projects been ready to go, most would've still been grounded as under even the broadest interpretation of the word "infrastructure", this infrastructure was appropriated just $150B of Obama's $787B stimulus bill. That's less than 1/5th -- far below the percentage of what private US enterprises expend to satisfy the free world's most burdensome corporate tax rate.

The problem for Presidents of the United States with regards to infrastructure spending is that typically the investment will not pay measurable economic growth dividends within any one POTUS' term in office even as they almost instantly threaten inflation. This obviously de-incentivizes our Presidents from getting the ball rolling on the infrastructure front. Public-Private Partnerships are probably the most efficient option in regards to financing and operating US infrastructure projects but PPPs generally require a decentralization of government power with disproportionate risk exposure borne by the public sector. These factors obviously conflict with leftist ideology and, to be honest, they also typically conflict with most modern Republicans' economic platforms. Hence, you get were we are today: insufficient infrastructure.