Brother, can you spare a dime? HELL NO!
The Dems are all up in a hissy fit that the jobs bill failed. The accusations that the GOP is trying to ruin the economy for voter turnout in November are hilarious. First of all, the GOP isn’t that well organized anymore and second of all, the dumbass voters in this country couldn’t find a voting strategy with both hands and a map.
It comes down to simple economics. The current deficit from these aid programs has skyrocketed and someday, somebody is going to have to pay for all this. The unemployed have received several extensions of their unemployment benefits since the bottom fell out of the economy and now it is time to stop this crap. While it’s a shame that people are out of work, losing their homes and can’t afford to “go shopping” we can’t deny that the country is in a recession and people are out of work and going to be broke. People are going to lose their homes. Quit trying to legislate away the effects of a ruined economy.
I’d rather congress spend their time making a sport out of hunting those arrogant douchebags on Wall Street than driving the country into unbelievable debt so someone can get a $400 unemployment check.
Comments (1)
The problem with your view is that someday, we may NOT have to pay for it. If we get the requisite GDP growth, the debt will pay for itself.
It works like this: we’re at the zero lower bound of monetary policy. In fact, we’re in mild deflation. By printing money and incurring debt, we’re not “crowding out” private investing–there’s no private sector investing right now! We’re “crowding in”: spending will boost GDP, which will cause private investors to jump into the water. Interest on T-bills is at historic lows. As long as we get GDP growth of ~3% for several years, we’ll be paying off the debt. Eventually, we’ll have to balance our budget. But that will only possible with stable GDP growth. Thus, GDP growth must come first. If we sacrifice short-, medium-, and long-term GDP growth for balanced budgets now now now!, we’ll be shooting ourselves in the foot.
The debt only gets paid off with growth. The only way to get growth is to spend. Thus, we must spend to pay off the debt. Circular? Not in Economics, its not!