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Boy !
You guys are a tough crowd.
Cut government spending, tame the deficit, and unemployment will fall?
IMF: Austerity boosts unemployment, lowers paychecks - The Washington Post
These past few years, the Republican line on job creation has been simple: Cut government spending, tame the deficit, and unemployment will fall. Maybe not tomorrow, maybe not the day after, but soon. To put it simply, House Majority Leader Eric Cantor (R- Va.) said last spring, less government spending means more private-sector jobs. But thats not exactly a rigorous study. So heres a rigorous study.
In a new paper for the International Monetary Fund, Laurence Ball, Daniel Leigh and Prakash Loungani look at 173 episodes of fiscal austerity over the past 30 yearswith the average deficit cut amounting to 1 percent of GDP. Their verdict? Austerity lowers incomes in the short term, with wage-earners taking more of a hit than others; it also raises unemployment, particularly long-term unemployment.
More specifically, an austerity program that curbs the deficit by 1 percent of GDP reduces real incomes by about 0.6 percent and raises unemployment by almost 0.5 percentage points. Whats more, the IMF notes, the losses are twice as big when the central bank cant cut rates (a good description of the present.) Typically, income and employment dont fully recover even five years after the austerity program is put in place.
History shows austerity is a mistake.
yet more facts you on the right will ignore to retain your histically failed ideas
It worked real well in the 1920 depression... Spending didn;t work so well for Hoover and FDR's Depression.
HAHAHAHAHAHAHAHAHAH
go get hitorical proof of your little claim
173 episodes of fiscal austerity over the past 30 years
Now you claim your ideas work based on WHAT evidence?
I'd try to explain to you that simply wanting the federal government to reduce wasteful spending and reduce the deficit does not equal 'austerity measures', but I highly doubt you have the mental capacity to comprehend the explanation.
IMF: Austerity boosts unemployment, lowers paychecks - The Washington Post
These past few years, the Republican line on job creation has been simple: Cut government spending, tame the deficit, and unemployment will fall. Maybe not tomorrow, maybe not the day after, but soon. To put it simply, House Majority Leader Eric Cantor (R- Va.) said last spring, less government spending means more private-sector jobs. But thats not exactly a rigorous study. So heres a rigorous study.
In a new paper for the International Monetary Fund, Laurence Ball, Daniel Leigh and Prakash Loungani look at 173 episodes of fiscal austerity over the past 30 yearswith the average deficit cut amounting to 1 percent of GDP. Their verdict? Austerity lowers incomes in the short term, with wage-earners taking more of a hit than others; it also raises unemployment, particularly long-term unemployment.
More specifically, an austerity program that curbs the deficit by 1 percent of GDP reduces real incomes by about 0.6 percent and raises unemployment by almost 0.5 percentage points. Whats more, the IMF notes, the losses are twice as big when the central bank cant cut rates (a good description of the present.) Typically, income and employment dont fully recover even five years after the austerity program is put in place.
You can raise the taxes on the wealthy without harming the economy.
They will still have money to spend and they sure as hell have not created the jobs we were promised by givig them tax cuts
You can raise the taxes on the wealthy without harming the economy.
They will still have money to spend and they sure as hell have not created the jobs we were promised by givig them tax cuts
You can raise the taxes on the wealthy without harming the economy.
They will still have money to spend and they sure as hell have not created the jobs we were promised by givig them tax cuts
No I guess I'll have to disagree with that, TM.
The time to have raised taxes was BEFORE the meltdown.
Now is NOT the time to make money even more scarce than it is right now.
While I have absolutely no doubt that you and I agree that the tax structure is wildly in favor of the very VERY wealthy, increasing taxes on people making over a mere $250 K is, I think, a terrrible mistake.
Our problems are NOT stemming from the national debt.
Increasing taxes to help cring down the national debt now would be the same mistake that FDR made in 38.
This economy is SHORT OF CASH.
Yes the rich have plenty, but if you raise their taxes now, that won't put people back to work.
You can raise the taxes on the wealthy without harming the economy.
They will still have money to spend and they sure as hell have not created the jobs we were promised by givig them tax cuts