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On the right wing poster child, and not too long ago, Ireland:
"Well, you know, the — the experience of other countries in the world is some guide. You take a nation like Ireland, for instance. They cut their tax rate. I believe it’s less than half of the tax rate in most of the other European nations. And they have become — well, they have moved from a basket-case economy to a booming economy. Jobs have been flowing into Ireland."
- Mitt Romney, Jan 2008
Cuts in Europe didn't LEAD to their crash. Their spending led to their crash and the cuts are after the fact.
In fact, some are still in denial over there that they have financial problems.
The malinvestment has to clear at some point. You can't make years of bad policy decisions and expect the economy to suddenly recover when you make some token attempt at correcting things, while still saying things such as "Oh, we can't cut that or this and definitely not that."
A 1% cut in spending each year for the next six years would only amount to $222 billion, which will only address 15% of one year's deficit. Assuming spending ($3.7 trillion) and revenues ($2.2 trillion) remains static, you would have to cut spending by 4% every year for at least ten years to bring spending in line with revenues and balance the budget.
This author points out what should be obvious to anyone: Cutting government in a time of recession simply makes it worse, not better, and Ireland is the best current example.
"...Actually, it’s kind of ironic. While Republicans love to engage in Europe-bashing, they’re actually the ones who want us to emulate European-style austerity and experience a European-style depression.
And that’s not just an inference. Last week R. Glenn Hubbard of Columbia University, a top Romney adviser, published an article in a German newspaper urging the Germans to ignore advice from Mr. Obama and continue pushing their hard-line policies. In so doing, Mr. Hubbard was deliberately undercutting a sitting president’s foreign policy. More important, however, he was throwing his support behind a policy that is collapsing as you read this.
In fact, almost everyone following the situation now realizes that Germany’s austerity obsession has brought Europe to the edge of catastrophe — almost everyone, that is, except the Germans themselves and, it turns out, the Romney economic team.
Needless to say, this bodes ill if Mr. Romney wins in November. For all indications are that his idea of smart policy is to double down on the very spending cuts that have hobbled recovery here and sent Europe into an economic and political tailspin…"
Yet you einsteins think spending more money we dont have is supposed to help? You and Obama blast states who cut spending.
Are you people really this dense? You can NOT continue to spend money you dont have. Cuts have to be made. Printing money is foolish, and will only make our problems much, much worse in the long run. It is not that damn hard to figure out.
Any yet, you haven't figured it out because its not that easy to figure out. We don't need to cut spending. Time is money, and people are sitting around not working. We need to cut spending on things purchased by accumulating foreign debt. Making it even more complex is how Fed and da guberment has made it worse.
End income taxes and SS withholding
Raise interest rates
Add a tax on oil, our biggest import.
That will encourage the use of domestic labor where there is a surplus to spend lots of money on, and it will reduce the money now blowing out of this country in dollar carry trade.
Unfortunately this does not benefit the oligarchy.
Even more basic is the fact that the European recession is the direct result of the GOP policy that caused the 2008 collapse of the world economy.
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GOP economic policy = European style collapse
