cbirch2
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- Jul 9, 2011
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- #21
And just to try to bring this back to the main point, an immediate $1 trillion dollar cut to government spending will drive the economy back into recession.
"Economists across the political spectrum say the impact of such drastic government spending cuts would be majorly disruptive and harmful to the economy in the short term."
At the scale hes talking about, its unlikely you could have an immediate reduction in government without hurtling the economy into recession, says Kevin Hassett, economic policy director for the American Enterprise Institute and chief economic adviser to John McCains 2000 presidential campaign.
"Pauls plan would upend the economy at a time when its already fragile," says Gus Faucher, director of macroeconomics for Moodys Analytics. That much deficit reduction in one year is going to be a huge drag on the economy . . . the reduction in spending is much greater than cuts in taxes, says Faucher. Were seeing that impact in Europe right now, where severe fiscal austerity has caused big problems for the European economy. While long-term deficit reduction is important, legislators need to make sure that the economy is strong before major cuts take effect
Ron Paul’s economic plan - The Washington Post
im sure the chief economic advisor to mccain and the director of macroeconomics at moodys are just messing around....
"Economists across the political spectrum say the impact of such drastic government spending cuts would be majorly disruptive and harmful to the economy in the short term."
At the scale hes talking about, its unlikely you could have an immediate reduction in government without hurtling the economy into recession, says Kevin Hassett, economic policy director for the American Enterprise Institute and chief economic adviser to John McCains 2000 presidential campaign.
"Pauls plan would upend the economy at a time when its already fragile," says Gus Faucher, director of macroeconomics for Moodys Analytics. That much deficit reduction in one year is going to be a huge drag on the economy . . . the reduction in spending is much greater than cuts in taxes, says Faucher. Were seeing that impact in Europe right now, where severe fiscal austerity has caused big problems for the European economy. While long-term deficit reduction is important, legislators need to make sure that the economy is strong before major cuts take effect
Ron Paul’s economic plan - The Washington Post
im sure the chief economic advisor to mccain and the director of macroeconomics at moodys are just messing around....