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We can’t cut our way to a better economy

I know that conservatives are trying to convince the American people that we can cut our way to a better economy, but that just isn’t true. We can hold our breaths and jump up and down and scream, but that isn’t going to change reality. Conservatives tell us that we are spending too much. Really? How much is too much for a country of 300 million? Europe tried cutting their way to growth and it didn’t work.

From EPI:

In the summer of 2010, the newly-elected conservative government of the United Kingdom passed and implemented a large austerity budget. This budget was heavily weighted to spending cuts—80 percent of the total consolidation—and included an average 25 percent cut to non-health domestic departmental spending. Tax increases accounted for the remaining 20 percent, including increases in the value-added tax (essentially a sales tax). In total, this fiscal consolidation represented 2.2 percent of GDP. Combined with the previous government’s planned austerity, the overall fiscal consolidation implemented totaled 6.3 percent of GDP.1

This austerity package caused the British economy to slow significantly. Despite growing at an annualized rate of 4.5 percent in the second quarter of 2010, the recovery completely stalled by the end of that year. Over the last six quarters, the British economy has experienced no real growth; in fact, it has contracted and unemployment has risen. The U.S. economy, meanwhile, has avoided austerity on the massive scale that Britain has adopted, and in the last year-and-a-half has grown consistently (albeit more slowly than what’s needed), adding more than two million jobs.

By |2012-06-10T01:21:35-04:00June 10th, 2012|Economy, Party Politics|Comments Off on We can’t cut our way to a better economy

Good Riddance To Cantor & Kyl In Debt Talks

Extreme conservative House Majority Leader Eric Cantor has pulled out of the ongoing debt ceiling talks in Washington.

Republican Senator John Kyl of Arizona–who has a problem with facts–has also left these talks.

It appears that additional stimulus and possible tax increases for those most able to pay may be on the table as needed steps to help the economy.

What a welcome difference from the Republican strategy of working to keep the economy from recovering in order to hurt President Obama politically.

I’m wary of all sides in these talks. It is hard to see how the unemployed and the poor have any champions in Washington. Millions of hard-working middle class Americans also seem left out as the rich get richer and corporations gain more power each day.

Let’s hope that President Obama and Democrats in Congress stand up for everyday Americans in these talks against a borderline disloyal opposition that wants to dismantle our government for the benefit of a greedy few, and in the name of pre-Civil War notions of small government.

Ohio Republican Wants A Lot Of Federal Money

File:Seal of Ohio.svg

What does Republican Governor-elect John Kasich of Ohio want?

Federal money for Ohio is what Republican Governor-elect John Kasich of Ohio wants.

From the Cincinnati Enquirer

“Gov.-elect John Kasich said Thursday after a meeting at the White House that he’s not optimistic that the Obama administration will let Ohio use the money intended for passenger rail to upgrade freight lines…Kasich has said the $400 million federally subsidized 3-C corridor project, which would provide passenger rail service among Cincinnati, Columbus and Cleveland, would be too costly for the state. He wants flexibility to use the money for other transportation needs. He’d also like flexibility in how the state spends federal money designated for job training, Title I (education) and Medicaid….Kasich said he was confident that the state would get the $400 million Race to the Top grant that the state won under outgoing Gov. Ted Strickland. Kasich has said he wants to make changes to the state’s education system, and some have voiced concern that his changes would jeopardize the money. “I have no reason to believe that we’re not going to get that,” Kasich said.”

Mr. Kasich wants money for freight rail instead of for passenger lines.

Where is his call for free enterprise for freight rail?

Must Ohio’s freight rail industry be burdened by socialism? Where are the freight rail executives in opposing this socialism?

Mr. Kasich wants job training, Title I, and Medicaid money.

Where is all the Tea Party/Republican talk about the federal government staying away?

Mr. Kasich says the federal government denies him flexibility in how federal money will be spent.

Yet Ohio will still get the Race To The Top money despite the change in Ohio from a Democratic Governor to a Republican Governor.

What a bunch of hypocrisy is so many respects from Mr. Kasich and from the Republican Party in Ohio. (more…)

By |2010-12-07T23:41:46-04:00December 7th, 2010|Economy, Other Political Thoughts|Comments Off on Ohio Republican Wants A Lot Of Federal Money
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