[quote=briansd1]linvinincali, you can argue argue that we should cut spending during the good years all you want and you would agree with Keynes.
The fact remains that Bush cut taxes and increased spending.
As SK pointed out earlier, cutting spending will not stimulate the economy. It won’t work.
You can argue that short term pain is necessary for long term prosperity But nobody is proposing pain. Everyone wants to stimulate the economy.
The people on the right are proposing painful measures as if those measures would stimulate. They won’t. That’s hipocrisy right there.[/quote]
Brian: Here we go again. As to the hipocrisy (sic) on the right, you’re leaving large sections of the argument out to bolster your (incorrect) point. Absent from your discussion re: spending cuts is the painful reality that, if we fail to cut spending, debt service and entitlement outlays will essentially consume the entire US budget and sooner rather than later.
Also, the stimulus wasn’t so stimulative and largely because only 1/3 of the stimulus dollars were actually tasked for that specific purpose (the remaining 2/3 were comprised of tax cuts, emergency unemployment benefits and non-stimulus items like Pell Grants, S&T research grants, etc. Source is WashPost, which is centrist/left: http://www.washingtonpost.com/wp-dyn/content/graphic/2009/02/01/GR2009020100154.html) Of the 1/3 tasked, a good chunk has been either wasted (like when states use ARRA to replace state funding on highway projects and don’t put it to active use) or has yet to be deployed (the not-so-shovel-ready projects that the US public works system still has to digest and process.)
You can attempt to argue that more stimulus is needed (a la Krugman’s academic reasoning), but the reality is that the gubment cannot, due to systemic and bureaucratic issues, deploy the funds fast enough to achieve their objective. Again, there is a HUGE difference between THEORY and PRACTICAL APPLICATION.
As far as the obstructionist Right: I don’t deny there is validity to this point, but I’d ask to you recall: “Recovery Summer”, the “pivot to jobs”, the “jobs task force” and all of the other Obama Administration “programs” that were specifically designed to improve the jobs picture in the US.
I’m sure I don’t need to ask how all that has worked out…
