cbirch2
Active Member
- Jul 9, 2011
- 1,394
- 49
- 36
Ron pauls budget cuts $1 trillion dollars from the federal budget in a single year.
Can i just ask...why?
Its not like yields on treasuries are going up, the market isnt signaling that it wants us to decrease spending at all.
Yet somehow it has become common knowledge that removing $1 trillion of spending will help the economy. When people get fired and the government pays out less money or even eliminate tax breaks, it reduces demand in the short term. If the private sector cant add jobs fast enough to reduce unemployment now, why would it be a good idea to add more people to the unemployed? Particularly when the bond market isnt even signaling that its worried about our debt.
Pauls plan is economic suicide, and actual economists have been all over it.
Can i just ask...why?
Its not like yields on treasuries are going up, the market isnt signaling that it wants us to decrease spending at all.
Yet somehow it has become common knowledge that removing $1 trillion of spending will help the economy. When people get fired and the government pays out less money or even eliminate tax breaks, it reduces demand in the short term. If the private sector cant add jobs fast enough to reduce unemployment now, why would it be a good idea to add more people to the unemployed? Particularly when the bond market isnt even signaling that its worried about our debt.
Pauls plan is economic suicide, and actual economists have been all over it.