Posted on 06/11/2013 4:34:21 AM PDT by IBD editorial writer
Recovery: Liberals are apoplectic about "austerity," claiming that draconian spending cuts are killing jobs and economic growth. But it's President Obama's tax hikes, not spending restraint, that are hurting growth prospects.
Everywhere you turn these days, liberals are bemoaning the harm caused by "austerity." The left-wing Center for American Progress claims spending cuts will cost 2 million jobs over the next seven years. The Brookings Institution says they've already cost 2 million. [snip]
But researchers at the Federal Reserve Bank of San Francisco looked at the data and came to a completely different conclusion.
(Excerpt) Read more at news.investors.com ...
When you cut spending it obviously has a negative impact on GDP. But when you limit growth of the economy through tax hikes and oppressive regulation on virtually every sector of the economy (healthcare, finance, energy, etc.) it has a significantly higher impact. 1-2% GDP growth is anemic at best. The spending cuts are hardly a rounding error.
Like preventing the military from reading about Obama
corruption and NSA targeting, the White Hut has ORDERED
all bankers to NOT dare read this story.
Ruh roh...
these guys at the San Fran Fed must not be from HARVARD where obama gets his real smart economic advisors
like Larry Summers
in fact, ask Harvard how well Mr Summers managed their endowment - no austerity there!
Just wait until the Obamacare taxe hikes hit in January.
What does Janet Yellen think?
bookmark
Agreed. Spending cuts—especially cuts in regulatory pork for local governments—would allow new, small competition and eventually generate legitimate, durable revenues, if each new producer is not taxed or fee’d much.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.