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Title: G.O.P. on Defensive as Analysts Question Party’s Fiscal Policy
Source:
NY TImes
URL Source: http://www.nytimes.com/2011/08/13/b ... es-growing-louder.html?_r=2&hp
Published: Aug 14, 2011
Author: NY Times
Post Date: 2011-08-14 23:56:21 by go65
Keywords: None
Views: 8894
Comments: 25
WASHINGTON — The boasts of Congressional Republicans about their cost-cutting victories are ringing hollow to some well-known economists, financial analysts and corporate leaders, including some Republicans, who are expressing increasing alarm over Washington’s new austerity and antitax orthodoxy. Enlarge This Image Win McNamee/Getty Images House Majority Leader Eric Cantor issued a defensive memo. Multimedia TimesCast | Republican Economics Graphic Members of the Bipartisan Deficit Panel Related Economix Blog: Do Congress and the White House Deserve an AA+ Rating? (August 12, 2011) Related in Opinion Editorial: Magical Unrealism (August 13, 2011) Blow: Genuflecting to the Tea Party (August 13, 2011) Andersen: We, Robot (August 13, 2011) Readers’ Comments Readers shared their thoughts on this article. Read All Comments (375) » Their critiques have grown sharper since last week, when President Obama signed his deficit reduction deal with Republicans and, a few days later, when Standard & Poor’s downgraded the credit rating of the United States. But even before that, macroeconomists and private sector forecasters were warning that the direction in which the new House Republican majority had pushed the White House and Congress this year — for immediate spending cuts, no further stimulus measures and no tax increases, ever — was wrong for addressing the nation’s two main ills, a weak economy now and projections of unsustainably high federal debt in coming years. Instead, these critics say, Washington should be focusing on stimulating the economy in the near term to induce people to spend money and create jobs, while settling on a long-term plan for spending cuts and tax increases to take effect only after the economy recovers. But Republicans in Congress and on the presidential campaign trail refuse to back down. Economists disagree about the proper balance between spending cuts and tax increases in reducing a government’s debts. Some studies by both liberal and conservative economists suggest that emphasizing spending cuts is better for long-term growth. But there are few if any precedents for paying down such a large debt solely through spending cuts. Among those calling for a mix of cuts and revenue are onetime standard-bearers of Republican economic philosophy like Martin Feldstein, an adviser to President Ronald Reagan, and Henry M. Paulson Jr., Treasury secretary to President George W. Bush, underscoring the deepening divide between party establishment figures and the Tea Party-inspired Republicans in Congress and running for the White House. “I think the U.S. has every chance of having a good year next year, but the politicians are doing their damnedest to prevent it from happening — the Republicans are — and the Democrats to my eternal bafflement have not stood their ground,” Ian C. Shepherdson, chief United States economist for High Frequency Economics, a research firm, said in an interview. As for the longer term, Ethan Harris, co-head of global economics research at Bank of America, wrote this week that “Given the scale of the debt problem, a credible plan requires both revenue enhancement measures and entitlement reform. Washington’s recent debt deal did not include either.”
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#1. To: A K A Stone, CZ82, Jwpegler, lucysmom, skip intro, nolu chan, brian s, war (#0)
Yet Republicans insist that taxes will not be on the table for the bipartisan Congressional committee created by the deficit deal. The panel must propose additional savings by Nov. 23 to fulfill the deal’s promise of up to $2.4 trillion in savings over 10 years. Assuming Democrats then refuse to consider entitlement savings, only discretionary spending would be left — less than 40 percent of the budget, encompassing education, research, military, infrastructure and more. Last winter House Republicans forced Mr. Obama to agree to cut such spending by $183 billion over a decade. The deficit deal would cut nearly $1 trillion more. The prospect of further reductions worries forecasters. Jerry Webman, chief economist of OppenheimerFunds, wrote in an analysis that while the cuts were not huge this year or next, “they are nonetheless contrary to what would be expected in a fragile economic environment.” In separate interviews, Joel Prakken, chairman of Macroeconomic Advisers, a forecasting firm, and Laurence H. Meyer, its co-founder and a former Federal Reserve governor, called the reductions “job-killing spending cuts” — playing on Republicans’ mantra against “job-killing tax increases.” Mr. Prakken said tighter spending would “slow economic growth unless it was offset with lower interest rates through the Fed.” But with interest rates already near zero, the best the Fed could do this week was signal that rates would remain ultralow well into 2013. Low borrowing costs, analysts say, are more reason to bolster the economy now. “At the very least,” said Mark Zandi, chief economist of Moody’s Analytics, Congress should renew for another year two measures that expire after 2011 — payroll tax relief for employees and extended unemployment compensation — as Mr. Obama has proposed. If either expired, Mr. Zandi said, that could shave roughly a half-percentage point from economic growth next year. Interesting read.
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They should do across the board spending cuts and cap spending. Whatever the percentage is to balance budget in 3 to 5 years. Keep that money in the economy and out of the hands of DC parasites who are "eating out our substance".
ROTFLMMFAO...... So why not get out of the way and let the "PRIVATE" sector create "JOBS"?????? More jobs means more revenues, right!!!! Or is it as Nancy Pelosi says Unemployment benefits and handouts creates jobs???? Oh that's right you can't allow the Private sector to create job cause that would stop the chaos needed to fully implement your Socialist bullshit system... my bad..... 608 new job killing regulations by our illustrious Kenyan Village Idiot last month alone....
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!! -----------------------------"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
So your answer to the findings and opinions of economists is to ascribe a conspiracy theory? The private sector is as unfettered as it ever was. You kook Republicans ascribe to capitalism the jitteriness of a 16 year old virgin on prom night. God forbid anyone looks at capitalist cross eyed and the economy collapses. Talk about capitalism being a house of cards - the very defenders of it are the ones saying it is. Which is of course a produce of fear mongering - tell Joe Blow voter that capitalism will collapse if the idle rich (and the rich are being idle - doing nothing with their money) are taxed at Ronald Reagan/Bill Clinton era rates. Fuck off, Republican nobs. This tactic won't work any longer.
With the economy still in the dumper -- maybe permanently? -- and full-time jobs becoming as scarce as rain during a drought, huge percentages of Americans have had their (misplaced) faith in the American dream shaken, the upper-middle-class consumerist lifestyle is exposed as a mirage for anybody who plays by the rules. Capitalism and the America that embraced it as a way of life is now and forever more a failure. It does me good to know that the generation that voted in Reagan and his ideology will see their America die from that ideology before their very own eyes and knowing they had a hand in its destruction.
Fuck off, Democrat nobs. This tactic doesn't work any longer..... You're right, ask all of the Dims in the House who got voted out in 2010....
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!! -----------------------------"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
Where are the jobs? The Bush tax cuts were kept. Where are the jobs? The govt cut govt spending. Where are the jobs?
With the economy still in the dumper -- maybe permanently? -- and full-time jobs becoming as scarce as rain during a drought, huge percentages of Americans have had their (misplaced) faith in the American dream shaken, the upper-middle-class consumerist lifestyle is exposed as a mirage for anybody who plays by the rules. Capitalism and the America that embraced it as a way of life is now and forever more a failure. It does me good to know that the generation that voted in Reagan and his ideology will see their America die from that ideology before their very own eyes and knowing they had a hand in its destruction.
It's amazing that most (all?) of these were just pulled out of thin air, with no congressional approval. Government is the problem, not the solution. If congress can't repeal anything, they should just go home. They've done enough damage already.
Obama's watch stopped on 24 May 2008, but he's been too busy smoking crack to notice.
If you want a job. Get your ass off the internet and go apply at walmart.
Only if they want to further depress the economy. Did you read the article?
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the private sector has created more jobs under Obama than under Bush. And the private sector are the ones arguing against rapid budget cuts and against going into default. Why do you keep ignoring that?
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Did you read the article? Paying interest is really stupid. They should balance the budget this year. They can fire 80 percent of federal workers. Let them get a real job or starve.
Before the GOP sabotaged the economy the USA was borrowing at near zero interest rates. Hopefully, it will continue to stay at low % after the S&P Tea PArty downgrade. Judging by the fact that capital left the private sector investing for Treasury Bonds, the free market has voted for govt investment.
With the economy still in the dumper -- maybe permanently? -- and full-time jobs becoming as scarce as rain during a drought, huge percentages of Americans have had their (misplaced) faith in the American dream shaken, the upper-middle-class consumerist lifestyle is exposed as a mirage for anybody who plays by the rules. Capitalism and the America that embraced it as a way of life is now and forever more a failure. It does me good to know that the generation that voted in Reagan and his ideology will see their America die from that ideology before their very own eyes and knowing they had a hand in its destruction.
exactly.
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That money, about $2 trillion, is being hoarded by corporations and not circulating in the economy. It is catering to corporations that is eating our substance. Long live the market state!
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
That is one of those phrases that has no meaning but is mindlessly repeated until accepted as truth by a certain segment of the population - otherwise known as propaganda.
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
it also ignores the fact that most government programs are put into place as a response to failings of the free market.
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I suppose if 80 percent of those government jobs were contracted out at the same cost to taxpayers, and the same employees did those same jobs, then they would be doing "real" work?
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
And those failings usually relate to a lack of responsibility and integrity in the private sector; yet we are to believe that removing government oversight is the answer to a better, more profitable world for us all. Ha!
"...all of the equations in neoclassical economics are rubbish. The differential equations describe nothing. Economics is not about mathematics, it is about the human being." Sandeep Jaitly
ROTFLMMFAO........
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!! -----------------------------"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
So why is there 2.5 million "MORE" people "UNEMPLOYED" now under Obozo vs under Bush???? So exactly how many jobs has Obozo created????? I know how many Bush created....
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!! -----------------------------"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
Why do you keep ignoring that? I'm ignoring it because people (Liberals) who are getting paid to say stupid things like that are saying it.....
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!! -----------------------------"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
Because we lost jobs through the first eight months of Obama's term, and the growth in jobs hasn't kept up with the growth in population. See below: We lost 700k jobs in Bush's last month in office and gained over 100k last month. Which do you prefer?
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The US Chamber of Commerce is liberal?
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Which do you prefer? A logical answer.... So how does your graph answer this statement????? "The private sector has created more jobs under Obama than under Bush".
When asked by a Liberal what I bought my Granddaughter for her 1st birthday I replied, "MORE AMMUNITION"!!!! -----------------------------"People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf."
Per the BLS: http://data.bls.gov/cgi-bin/surveymost?ce 111,634,000 Americans were employed in the private sector at the start of George W. Bush's first term, in January 2001. When Bush left office in January of 2009, 110,961,000 Americans were employed in the private sector. Overall, in Bush's eight years in office, the country shed 673,000 private sector jobs.
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S.& P. based its downgrade and its negative outlook for America’s credit rating partly on the assumption that Bush-era tax cuts for high incomes would be extended past their 2012 expiration, “because the majority of Republicans in Congress continue to resist any measure that would raise revenues.” S.& P. said it could change its outlook to stable if the tax cuts ended.
#2. To: go65 (#1)
#3. To: go65 (#0)
#4. To: CZ82, go65, AKA Stone (#3)
Oh that's right you can't allow the Private sector to create job cause that would stop the chaos needed to fully implement your Socialist bullshit system... my bad.....
#5. To: Godwinson (#4)
Fuck off, Republican nobs. This tactic won't work any longer.
#6. To: CZ82, go65 (#5)
You're right, ask all of the Dims in the House who got voted out in 2010....
#7. To: CZ82, *The Two Parties ARE the Same* (#3)
608 new job killing regulations by our illustrious Kenyan Village Idiot last month
"We (government) need to do a lot less, a lot sooner" ~Ron Paul
#8. To: Godwinson (#6)
#9. To: A K A Stone (#2)
They should do across the board spending cuts and cap spending.
#10. To: CZ82 (#3)
ROTFLMMFAO...... So why not get out of the way and let the "PRIVATE" sector create "JOBS"?????? More jobs means more revenues, right!!!! Or is it as Nancy Pelosi says Unemployment benefits and handouts creates jobs????
#11. To: go65 (#9)
Only if they want to further depress the economy.
#12. To: A K A Stone, go65 (#11)
(Edited)
Paying interest is really stupid.
#13. To: Godwinson (#12)
Judging by the fact that capital left the private sector investing for Treasury Bonds, the free market has voted for govt investment.
#14. To: A K A Stone (#2)
Whatever the percentage is to balance budget in 3 to 5 years. Keep that money in the economy and out of the hands of DC parasites who are "eating out our substance".
#15. To: hondo68 (#7)
Government is the problem, not the solution.
#16. To: lucysmom (#15)
That is one of those phrases that has no meaning but is mindlessly repeated until accepted as truth by a certain segment of the population - otherwise known as propaganda.
#17. To: A K A Stone (#11)
They can fire 80 percent of federal workers. Let them get a real job or starve.
#18. To: go65 (#16)
it also ignores the fact that most government programs are put into place as a response to failings of the free market.
#19. To: Godwinson (#6)
The govt cut govt spending. Where are the jobs?
#20. To: go65 (#10)
(Edited)
the private sector has created more jobs under Obama than under Bush.
#21. To: go65 (#10)
And the private sector are the ones arguing against rapid budget cuts and against going into default.
#22. To: CZ82 (#20)
(Edited)
So why is there 2.5 million "MORE" people "UNEMPLOYED" now under Obozo vs under Bush????
#23. To: CZ82 (#21)
I'm ignoring it because people (Liberals) who are getting paid to say stupid things like that are saying it.....
#24. To: go65 (#22)
We lost 700k jobs in Bush's last month in office and gained over 100k last month.
#25. To: CZ82 (#24)
So how does your graph answer this statement????? "The private sector has created more jobs under Obama than under Bush".
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