General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAusterity Economics Is Walking US Prosperity Off a Cliff
https://www.commondreams.org/headline/2014/07/17-0***SNIP
What's most troubling, argue Stein and Hersh, is that the impacts of the "deficits are bad" and "spending is bad" mantra will have long-lasting impacts on the economy as the lack of investment strangles the future potential of the economy.
They write:
To understand the impact of spending cuts on the overall economy, we can look at CBOs changing estimates of potential GDP in the first quarter of 2014 and its estimate for potential GDP at the end of 2020. Relative to CBOs estimates made in 2010 about the state of the economy, its most recent estimate shows growth of the U.S. economys supply-side potential is $351 billion smaller now after three years of spending cuts. CBO estimates also indicate the potential future growth path for the U.S. economy decreased by $633 billion through the end of 2020, following the austerity-burdened recovery.
Austerity is moving this key metric in the wrong direction, and CBOs report shows this policy choice is costing the U.S. economy dearly. CBO forecasts for potential GDP fell as austerity took hold, illustrating the painful and unnecessary costs of cutting spending on public investments, education, nutritional assistance, emergency unemployment insurance benefits, and more. These humane economic policies would be a textbook response that provides targeted fiscal stimulus in a downturn to deliver a strong, stable recovery.
liberal N proud
(60,335 posts)xchrom
(108,903 posts)deutsey
(20,166 posts)The social progress made last century has been unraveled and the old order is being restored.
ReRe
(10,597 posts)... maybe 20 years ago (?), but I started saying to my hubby "Those damn 'conservatives' will not be happy until we're ALL pinching pennies." And here we are. Austerityville. Did anyone else feel the squeeze as time progressed since Reagan?
ChisolmTrailDem
(9,463 posts)...flesh out the plan.
This isn't about doubting your suspicions, it's about validating mine.
liberal N proud
(60,335 posts)The end game is to break the middle class and return the United States to sweatshop economy.
It is a stupid plan as American middle class is the largest block of consumers in the world but the rich think that if they break the middle class, they will have it all. All the money that is and that is what they want.
They want it all and they want it now.
Anyway, that is my observation of what is happening today.
butterfly77
(17,609 posts)woo me with science
(32,139 posts)bullwinkle428
(20,629 posts)of the other huge things going on right now.
WillyT
(72,631 posts)MannyGoldstein
(34,589 posts)Kevin Baker/Harpers: Barack Hoover Obama
Paul Krugman: Barack Herbert Hoover Obama
The Republicans, of course, are even worse on this issue than the Democrats. But for the leader of the Democratic Party to champion a lighter version of Republican garbage isn't compromise: it's collaboration. And it's been an utter catastrophe (for the 99%).
xchrom
(108,903 posts)jwirr
(39,215 posts)all they often think it is the debt. They do not even know there is a trade deficit. Secondly many have fallen for the rethug propaganda and think that the deficit (debt) is the real problem. Until we can get this out there with a clear explanation too many will be voting for cutting the deficit without understanding what it means.
Octafish
(55,745 posts)Like Washington, it works for Goldman Sachs.
ChisolmTrailDem
(9,463 posts)xchrom
(108,903 posts)if money bulges in the middle -- far more people prosper and participate.
Populist_Prole
(5,364 posts)The real definition is: Whipsawing their political opponents, while extracting rents. That's it.
If there were truly a movement to for austerity accross the board, the pentagon wouldn't be but 50 yards point to point.
MisterP
(23,730 posts)in the electioneering can go by the roadside, now can it
http://www.theatlantic.com/magazine/archive/1981/12/the-education-of-david-stockman/305760/