Save this for later when the blame game for the ongoing economic misery tries to shift it all to John Boehner and Republicans who, regardless of whether you think they did or didn’t fight hard enough, definitely ended up with something that doesn’t cut enough — and in terms of how normal people think, didn’t cut anything at all.
Well, “big spending cuts” wouldn’t have more than a slight initial impact on growth either, while increasing it after a possibly rough quarter or two. Those who believe that statement lacks in compassion need to remind themselves that the so-called Party of Compassion (my *ass) has dragged us through 12 quarters of Keynesian hell since the POR (Pelosi-Obama-Reid) Economy aka the Fear-Based Economy began.
As seen in the CBO’s report (final page), outlays will be $21 billion and $42 billion lower in fiscal 2012 and 2013, respectively, than the March 2011 baseline.
At the end, in reference to the possible “repeal of the Bush tax cuts” (really a tax increase compared to the tax system everyone has been used to for almost nine years), Rugaber quotes a Chase economist claiming that “cuts in federal spending and the end of the tax cut could reduce growth by about 1.5 percentage points in 2012.” Would that be enough to intimidate the revenue-raisers from ruling the day?
You would think not, but I just have one question: