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Austerity making economy worse

Truthmatters

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Austerity is making the economy worse - MarketWatch First Take - MarketWatch



The stimulus — including tax cuts, grants to state and local governments, increased spending on infrastructure, a reinforced safety net and the automatic budget stabilizers — boosted the economy significantly in 2009 and 2010, but the impact of the stimulus and the automatic stabilizers is now waning. The recent agreement to end the debt-ceiling impasse will put a cap on federal discretionary spending for the next 10 years and it calls for even more deficit reduction from the so-called Super Congress. And, under current law, the Bush-Obama tax cuts will be expiring at the end of 2012.
 
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whitehall

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We haven't tried austerity at a national level yet but it certainly seems to be working in Wisconsin.
 

Lonestar_logic

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You dont know what austerity is then

Definition of AUSTERITY
1: the quality or state of being austere
2a : an austere act, manner, or attitude b : an ascetic practice
3: enforced or extreme economy
 

Bern80

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Usually I trust the CBO's objectivity so someone is going to have to help me understand how the alternative, government spending more, which will either have to come from higher taxes or adding more to the debt is going to put us in a better situation.
 

dilloduck

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TM believes in the magic money tree that you can pick from at will and never pay it back.

( and that's a fact, Jack )
 

Claudette

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Sure we know what austerity means.

Austerity has a few definitions. In 2011 news of Greece austerity riots continued for several months. In economics, austerity means policy that aims to cut a deficit, cut spending and reduce public services or benefits provided.

Read more: What does austerity mean

It means folks need to start taking care of themselves and their responsibilities.

The deficit needs to be reduced.

The credit card needs to be taken away from the Clowns in DC.

Hows that for a definitions??
 

Mad Scientist

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keep ignoring the facts
"Keep Ignoring The Facts" should be your signature line because you ignored the facts IN THE ARTICLE YOU POSTED!:
From your link:
However, reining in the budget deficits will help the economy in the long run, CBO said. Large and growing budget deficits would “crowd out” private investment once the economy is running at its full potential again, reducing potential GDP by up to 1.9% in 2021.
 

editec

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Austerity making economy worse

Of course it is.

How could it not?

This economy is lacking enough capital circulating through the system to be healthy.

The people are fearful because they don't have enough capital, and to some the solution to that problem is to withdrawl still more capital from the system?

I do not know how stupid one has to be to think that makes sense, but apparently there's clearly no shortage of people stupid enough to think that austerity will bring back abundance.
 

eflatminor

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Austerity is making the economy worse - MarketWatch First Take - MarketWatch



The stimulus — including tax cuts, grants to state and local governments, increased spending on infrastructure, a reinforced safety net and the automatic budget stabilizers — boosted the economy significantly in 2009 and 2010, but the impact of the stimulus and the automatic stabilizers is now waning. The recent agreement to end the debt-ceiling impasse will put a cap on federal discretionary spending for the next 10 years and it calls for even more deficit reduction from the so-called Super Congress. And, under current law, the Bush-Obama tax cuts will be expiring at the end of 2012.

Study the economic downturn of 1920 and how cutting taxes and cutting spending turned the situation around in months, followed by the 'roaring twenties'. Compare that to the central planners meddling in the 1930s and the recent downturn...years of capital sitting on the sidelines, high unemployment, little to no economic growth. Yea, your plan is working just beautifully.

Just as importantly, you want to spend more? Are you fucking nuts? My question is how do you plan to repay the $131,000 YOU currently owe for the debt we've already accumulated? Will you pay that off in addition to what you want to add in the next 10 years?

What the hell is wrong with living within our means and not burdening the future with crippling debt. You approach is not only fiscally unsustainable is morally FUBAR.
 

boedicca

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TMN is, true to form, rabidly incorrect.

Big Government is making the economy worse. The size of the Federal Government relative to GDP has increased by 25% in three years...it is sucking the oxygen out of the economy.
 

boedicca

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Austerity making economy worse

Of course it is.

How could it not?

This economy is lacking enough capital circulating through the system to be healthy.

The people are fearful because they don't have enough capital, and to some the solution to that problem is to withdrawl still more capital from the system?

I do not know how stupid one has to be to think that makes sense, but apparently there's clearly no shortage of people stupid enough to think that austerity will bring back abundance.



The economy has plenty of capital.

It is sitting on balance sheets On Strike due to the inane policies of the current government.
 
OP
Truthmatters

Truthmatters

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From Market Watch



With households still constrained by too much debt and flat wage growth, with businesses constrained by slow growth in sales, and with government pulling back, it’s going to take five more years before we’ll close the output gap — the difference between what we could produce and what we’ll actually produce.

The output gap is the numerical manifestation of the human tragedy that’s befallen our economy. It represents the wasted years lost to unemployment, the investment that wasn’t made, the consumption that was foregone. For eight grim years beginning in 2008 and ending in 2015, the estimated output gap is $4.6 trillion, including nearly $2 trillion between now and 2015.

We need stimulus, not austerity, to close that gap. If we don’t close it, we’ll suffer needless unemployment, poverty, hardship, foreclosures, and bankruptcies. Eight years is a long time to put off the dreams of an entire nation.
 

peach174

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The problem with liberals is that they think that the government is the engine that drives the economy.
This type of thinking is why very little is working for them in the White House.

The private sector and small business is the engine that drives the economy.
Get this through your heads libs.
 

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