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Bill USA

(6,436 posts) Thu Feb 7, 2013, 04:00 PM Feb 2013

Deficit Obsession Has Hurt The Recovery: CBO

http://tpmdc.talkingpointsmemo.com/2013/02/deficit-obsession-has-hurt-the-recovery-cbo.php

Here’s the buried lede(sic) from the Congressional Budget Office, which on Tuesday released its Budget and Economic Outlook for the coming decade: D.C.’s deficit obsession has been quite effective at cutting deficits at the expense of the still-struggling economy.

“[E]conomic activity will expand slowly this year, with real GDP growing by just 1.4 percent,” according to CBO’s projections. “That slow growth reflects a combination of ongoing improvement in underlying economic factors and fiscal tightening that has already begun or is scheduled to occur-including the expiration of a 2 percentage-point cut in the Social Security payroll tax, an increase in tax rates on income above certain thresholds, and scheduled automatic reductions in federal spending. That subdued economic growth will limit businesses’ need to hire additional workers, thereby causing the unemployment rate to stay near 8 percent this year, CBO projects.”

In other words, intentional efforts to reduce annual deficits and stabilize the debt are working. But if you retrain your gaze from the government’s balance sheet to the real economy, you’ll see the impact of that austerity is fewer people working and slower growth. According to CBO, the recovery won’t really pick up steam until next year, and the economy won’t have recovered until the end of 2017, when it will reach its output potential, and unemployment will fall to 5.5 percent.
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Deficit Obsession Has Hurt The Recovery: CBO (Original Post) Bill USA Feb 2013 OP

So, according to the CBO and many respected economists AndyA Feb 2013 #1

and very few of "them" are democrats either nt msongs Feb 2013 #2

the GOP Corporate media Echo Chamber has done a good job keeping "growth" out of any discussion Bill USA Feb 2013 #3

They WANT austerity, yes ? blkmusclmachine Feb 2013 #4

And he three things pointed out were all things (D) vehemently opposed at all times. Igel Feb 2013 #6

That's why the Repukes and their media whores have been crowing about the deficit Doctor_J Feb 2013 #5

anybody who demands deficit reduction should immediately be asked: yurbud Feb 2013 #7

AndyA

(16,993 posts)

1. So, according to the CBO and many respected economists

Reply to Bill USA (Original post)

Thu Feb 7, 2013, 04:14 PM

Feb 2013

Congress should stop wasting time discussing the deficit, and spend what they need to spend to get people back to work NOW...

Seems I've heard that from lots of sources, but none of them are Republicans.

msongs

(67,406 posts)

2. and very few of "them" are democrats either nt

Reply to AndyA (Reply #1)

Thu Feb 7, 2013, 04:17 PM

Feb 2013

Bill USA

(6,436 posts)

3. the GOP Corporate media Echo Chamber has done a good job keeping "growth" out of any discussion

Reply to AndyA (Reply #1)

Thu Feb 7, 2013, 04:50 PM

Feb 2013

concerning this Republican Dystopia (deficit created by Republican reckless policies - Cheney-Bush regime - and recovery sabotaged by Republican reckless political plotting - war on Obama).

Economic Growth Absent From Television Coverage Of Debt Ceiling Debate

http://www.democraticunderground.com/101655015

blkmusclmachine

(16,149 posts)

4. They WANT austerity, yes ?

Reply to Bill USA (Original post)

Thu Feb 7, 2013, 08:39 PM

Feb 2013

Igel

(35,309 posts)

6. And he three things pointed out were all things (D) vehemently opposed at all times.

Reply to blkmusclmachine (Reply #4)

Sun Feb 10, 2013, 02:02 PM

Feb 2013

Allowing the FICA reduction to expire. Oh, wait. That went without a peep.

Increasing taxes on the wealthy. Surely we like growth and objected to that idea. No? My bad. I guess this was a good bit of deficit reduction, even if the CBO (whose conclusion we like) also says austerity limits growth (thus showing we like the conclusion without really noticing the premises it's based on).

Then there's the horrible sequestration, that no true Democrat ever supported. Except for the President and a lot of Congressfolk. Shall we define them as not "true Democrats" or just accept that they are Democrats and, well, supported austerity and limited growth.

I mean, we liked the Afghan draw down and reduced military spending that this would entail. We'd get budget reductions from reducing planned non-spending. It was a point of pride. But when it happened ... it reduced spending and it was all the fault of the (R).

Or perhaps we can just say the CBO is wrong. These things don't constitute "austerity," and so there aren't any real austerity measures passed so far.

Such a muddle. We must be right. That's a given. All we have to do is find a way to spin the facts right.

Doctor_J

(36,392 posts)

5. That's why the Repukes and their media whores have been crowing about the deficit

Reply to Bill USA (Original post)

Fri Feb 8, 2013, 02:55 PM

Feb 2013

they want to sink the recovery. Unfortunately the president also represents the wealthy, and thus spouts the same BS about the deficit instead of fighting FOR jobs and AGAINST cuts. I he would listen to and embrace real economists like Krugman, the whole country, including him, would be better off.

yurbud

(39,405 posts)

7. anybody who demands deficit reduction should immediately be asked:

Reply to Bill USA (Original post)

Sun Feb 10, 2013, 02:08 PM

Feb 2013

how much do you want your taxes raised?

which corporate welfare subsidies should we cut?

And so on until they shut the fuck up.

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