How Does Cutting Spending Create Jobs?
source: http://www.cnn.com/2011/POLITICS/01/25/state.of.the.union/index.html?hpt=T1
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- lucasives
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In tonight's State of the Union address, the President focused much attention on innovation to create jobs and spur economic growth. The two Republican rebuttals focused on cutting spending and reducing the deficit.
The question I pose to you is this - 'How does cutting spending create jobs?'
The question I pose to you is this - 'How does cutting spending create jobs?'
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Rootcause
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I had the exact same question. The two common answers would be a) cutting spending would allow you to cut taxes and stimulate the economy and b) that govt borrowing related to excess spending is crowding out private debt and raising interested rates. But if we are really concerned with the debt then the cuts will be used to reduce the deficit, not cut taxes. Second, interest rates are already near a real rate of zero so they cannot go much lower.
So I am left with the same question we started with: how does cutting the deficit create jobs?
Somebody in the media needs to ask Michelle Bachman, I need the comic relief.
- 1 year ago
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Rootcause
