[Mr. Jeeves]

Spending cuts hurt the economy in the sense that a lot of businesses are government contractors - if the government isn't buying from them, they get into real trouble in a hurry.

I'm not saying that these companies have healthy business models, only that it's true that an involuntary cut back in the gravy train will damage the economy in the short-term.

[jdsteel]

I am fully aware of that. Where I disagree is that it will send the economy into depression as advertised. IMHO the cuts outlined in the fiiscal cliff will not.

[762X51]

Spending cuts hurt the economy in the sense that a lot of businesses are government contractors - if the government isn't buying from them, they get into real trouble in a hurry.

That doesn't affect the economy one whit. The government had to first REMOVE that money from the private sector economy in the form of taxes to be able to spend it. That money ALREADY existed in the economy and the people whose pockets it was taken from would have spent it in a more beneficial and efficient manner without it having to go through the government sieve first. There is no magic "government" money. If you believe your own statement then you must believe Barry when he says we need more stimulus in the form of government spending! Government spending only enriches government and it's employees! Period!