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"Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemployment"

T

TheDemSocialist

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A new government report said spending cuts scheduled to go into effect in 2013, coupled with the simultaneous expiration of Bush-era tax cuts, will shrink the U.S. economy and raise unemployment -- contradicting the Republican claim that reducing the federal budget deficit will spur economic growth.

The ​
Congressional Budget Office report
, released on Tuesday, estimated that the policies slated to kick in on Jan. 1 would slash the deficit and shrink the national economy by 1.3 percent during the first half of next year, likely throwing the country over a "​
fiscal cliff
" into another recession.

If left in place, the current policies would reduce the federal deficit by $607 billion, or 4 percent of gross domestic product, the report said. That reduction, from immediate tax increases or spending cuts, would "represent an added drag on the weak economic expansion," the CBO noted in its report.[FONT=Georgia, Century, Times, serif]"The resulting weakening of the economy will lower taxable incomes and raise unemployment, generating a reduction in tax revenues and an increase in spending on such items as unemployment insurance," the report said.[/FONT]

[FONT=Georgia, Century, Times, serif]​
Click to expand...
[/FONT]

[FONT=Georgia, Century, Times, serif]Read more and Videos @: [/FONT]CBO Report Says Deficit Reduction Will Cause New Recession

[FONT=Georgia, Century, Times, serif]This reports is a direct rebuttal of everything congressional republicans have been spewing wince the beginning of Obama's presidency. Their need to "shock ans awe" us viea the media has been part of this corporate news cycle for 2 years now. Lets see if the corporate media will push this truth in the evening news? [/FONT]

Thoughts?
Comments?
Response? ​
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TheDemSocialist said:
[/COLOR][/FONT]

[FONT=Georgia, Century, Times, serif]Read more and Videos @: [/FONT]CBO Report Says Deficit Reduction Will Cause New Recession

[FONT=Georgia, Century, Times, serif]This reports is a direct rebuttal of everything congressional republicans have been spewing wince the beginning of Obama's presidency. Their need to "shock ans awe" us viea the media has been part of this corporate news cycle for 2 years now. Lets see if the corporate media will push this truth in the evening news? [/FONT]

Thoughts?
Comments?
Response? [/LEFT]
Click to expand...

You are talking about a jolt to the economy of about 3-4% of GDP. I don't know any rational person on either side who advocates this.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TheDemSocialist said:
[/COLOR][/FONT]

[FONT=Georgia, Century, Times, serif]Read more and Videos @: [/FONT]CBO Report Says Deficit Reduction Will Cause New Recession

[FONT=Georgia, Century, Times, serif]This reports is a direct rebuttal of everything congressional republicans have been spewing wince the beginning of Obama's presidency. Their need to "shock ans awe" us viea the media has been part of this corporate news cycle for 2 years now. Lets see if the corporate media will push this truth in the evening news? [/FONT]

Thoughts?
Comments?
Response? [/LEFT]
Click to expand...

I saw this in the news. This kind of warning from the CBO is unprecedented and not to be taken lightly. Congress still has time to act before the end of the year. The question is, will they?
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

Methinks the problem lies with the quality of spending, not the quantity. So much goes to so few and the remains go to those who contribute least.

Of course cutting spending will shrink the economy. Is that what our economy is? Nothing to do with individuals, all provided by the government or the corporation?

I feel like I live in a badly written post-apocalyptic novel.

Catawba said:
I saw this in the news. This kind of warning from the CBO is unprecedented and not to be taken lightly. Congress still has time to act before the end of the year. The question is, will they?
Click to expand...
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

specklebang said:
Methinks the problem lies with the quality of spending, not the quantity. So much goes to so few and the remains go to those who contribute least.

Of course cutting spending will shrink the economy. Is that what our economy is? Nothing to do with individuals, all provided by the government or the corporation?

I feel like I live in a badly written post-apocalyptic novel.
Click to expand...

Yes I agree, for the last 30 years our priority has been what benefits the wealthy few rather that what benefits the most citizens.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

specklebang said:
Methinks the problem lies with the quality of spending, not the quantity. So much goes to so few and the remains go to those who contribute least.

Of course cutting spending will shrink the economy. Is that what our economy is? Nothing to do with individuals, all provided by the government or the corporation?

I feel like I live in a badly written post-apocalyptic novel.
Click to expand...

some think that people exist merely to pay taxes.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

Catawba said:
Yes I agree, for the last 30 years our priority has been what benefits the wealthy few rather that what benefits the most citizens.
Click to expand...


most citizens are far better off in this country than the socialist paradises you crave. and winners tend to win in a competitive society-I realize you want to get rid of competition though
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TurtleDude said:
most citizens are far better off in this country than the socialist paradises you crave. and winners tend to win in a competitive society-I realize you want to get rid of competition though
Click to expand...

Ever spent any time in any of those "socialist paradises" otherwise known as the remainder of the economically-developed world?
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

Somerville said:
Ever spent any time in any of those "socialist paradises" otherwise known as the remainder of the economically-developed world?
Click to expand...
Yeah Greece is doing great, France saw tons of people die in a heat wave. Feel free to move there. the sooner this country stamps out the creeping crud of socialism the better
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TurtleDude said:
Yeah Greece is doing great, France saw tons of people die in a heat wave. Feel free to move there. the sooner this country stamps out the creeping crud of socialism the better
Click to expand...



I believe the question was: Ever spent any time in any of those "socialist paradises" otherwise known as the remainder of the economically-developed world? Are you able to answer that question without spewing forth rightie talking points?
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

Somerville said:
I believe the question was: Ever spent any time in any of those "socialist paradises" otherwise known as the remainder of the economically-developed world? Are you able to answer that question without spewing forth rightie talking points?
Click to expand...

many of them-next
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TurtleDude said:
most citizens are far better off in this country than the socialist paradises you crave. and winners tend to win in a competitive society-I realize you want to get rid of competition though
Click to expand...

There was nothing wrong with the competition we had before Voodoo Economics. Most citizens are not doing as well after 30 years of supply side economics and financial deregulation as they were before, so there is no incentive to keep voting for those that just wish to continue supply side economics and financial deregulation.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TurtleDude said:
Yeah Greece is doing great, France saw tons of people die in a heat wave. Feel free to move there. the sooner this country stamps out the creeping crud of socialism the better
Click to expand...

I thought France and Greece were socialist according to you? Now its "they are creeping up on socialism". TD what one is it? You gots me all confused up in here...
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TurtleDude said:
Yeah Greece is doing great, France saw tons of people die in a heat wave. Feel free to move there. the sooner this country stamps out the creeping crud of socialism the better
Click to expand...

Greece is in recession, Great Britain has slipped back into recession and the entire Euro area is looking at zero growth. Just what economists predicted after the austerity budgets were forced down their throats by the right wing bankers. You must be happy, Republicans love recessions, it's what they do best. 71% of the last 14 recessions happened under GOP administrations. A record to be proud of for sure.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

iguanaman said:
Greece is in recession, Great Britain has slipped back into recession and the entire Euro area is looking at zero growth. Just what economists predicted after the austerity budgets were forced down their throats by the right wing bankers. You must be happy, Republicans love recessions, it's what they do best. 71% of the last 14 recessions happened under GOP administrations. A record to be proud of for sure.
Click to expand...


And aren't the GOP proposing austerity measures here that the CBO just warned would create another recession? Why in the hell would we do that with the experience of Greece in our face?
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

Catawba said:
And aren't the GOP proposing austerity measures here that the CBO just warned would create another recession? Why in the hell would we do that with the experience of Greece in our face?
Click to expand...


You don't want to point to Greece. If they get thrown out of the EU, there will be a depression in Greece. Living conditions will be hellish.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

washunut said:
You don't want to point to Greece. If they get thrown out of the EU, there will be a depression in Greece. Living conditions will be hellish.
Click to expand...

Yep, that's why I plan to vote against the austerity measures the GOP are proposing that the CBO just warned could bring on another Recession in this country.

If a dog bites you once, its his fault. If a dog bites you twice, its your fault.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TurtleDude said:
most citizens are far better off in this country than the socialist paradises you crave. and winners tend to win in a competitive society-I realize you want to get rid of competition though
Click to expand...

Actually, inherited wealth seems to win in our society. There's no doubt about that!
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

washunut said:
You don't want to point to Greece. If they get thrown out of the EU, there will be a depression in Greece. Living conditions will be hellish.
Click to expand...

I spent a bit of time there and I cannot say their "living conditions" are all that great now.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

Interesting that the OP wants to combine cuts and removal of Tax cuts together instead of focusing on each seperately. Budget cuts are going to lead to more unemployment as useless and costly programs and their employees are cut, duh.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

TheDemSocialist said:
[FONT=Georgia, Century, Times, serif]This reports is a direct rebuttal of everything congressional republicans have been spewing wince the beginning of Obama's presidency. Their need to "shock ans awe" us viea the media has been part of this corporate news cycle for 2 years now. Lets see if the corporate media will push this truth in the evening news? [/FONT]
Click to expand...
Quite the opposite. The most substantial component of the report's predictions of a shrinking economy and rising unemployment is the scheduled expiration of the Bush tax cuts.

The "alternative scenario" that they advocate would extend the Bush tax cuts, eliminate Obama's payroll tax cut, and implement only the discretionary budget portion of the Budget Control Act (in addition to extending the usual Medicare and AMT fixes).

Thus, they're pretty much in line with most everything Congressional Republicans have been "spewing," except for $40 billion dollars in nondiscretionary spending cuts.
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

The thread title should be:

"Spending Cuts Coupled with the Expiration of Bush Tax Cuts Shrink US Economy and Raise Unemployment"
 
Re: "Spending Cuts Coupled with Bush Tax Cuts Shrink US Economy and Raise Unemploymen

Why no mention of these issues (tax increases and spending cuts) separately is made baffles me completely, as most CBO nonsense does. Taxing more is fairly straight forward to estimate the effect of, as that much dollar for dollar is taken from those that would otherwise spend, save or invest it in the private economy. Spending cuts, on the other hand, are much harder to gauge the economic effect of since cutting program A may do nothing, but cutting program B may cause a big ripple effect.
 
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