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June 30, 2010

The Immorality of Deficit Hawks
Posted by Michael Cohen

Over at AOLNews I argue that the focus on deficit spending not only risks harming the US recovery,but is a cynical effort by the GOP to extend the misery of those hurt by the downturn . . . and reap the political rewards:

With the country fixated on the adventures of Gen. Stanley McChrystal and the BP spill, it's understandable that last week's most depressing news might have passed a few people by: The U.S. Senate is intent on extending America's economic misery.
Led by all its Republican members and Democrat Ben Nelson of Nebraska, the Senate is filibustering a bill that includes, among other things, emergency jobless benefits. As a result, 1.2 million Americans have seen their checks cut off since June 2, a figure that could rise to 2 million over the next week.
Failure to pass this bill will do more than hurt the unemployed -- it will actually cost jobs. Twenty-four billion dollars in Medicare funding would have helped state legislatures plug their budget gaps. Without it, states like Pennsylvania will have to cut funds for substance abuse and homelessness programs and scale back funding for child welfare by one-quarter, among other steps, according to a report from the Center on Budget and Policy Priorities
Colorado will likely have to eliminate state aid for full-day kindergarten. In Arizona, funding would be cut for state courts. And in New Mexico, fewer funds will be available for emergency hospital services. An estimated 200,000 jobs could be lost as a result.
Why is the Senate purposely hurting the unemployed -- and dealing another blow to the country's economic renewal? Well, there's the stated reason and then the real reason.
The stated reason is the deficit . . . the real reason is that Republicans really don't want to see the economy improve. Read the whole thing here.

 

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Comments

Why finance a broken system with borrowed money?

Extending unemployment benefits only delays the inevitable.

State budget gaps? California spends more on its prisons than on its public universities primarily due to the influence of the prison guard union on a democratic governor (Davis).

Bottom line, this is not an "economic slump" it is an organic governmental failure at all levels, and blaming the` Democrats for not delivering the promised changes is quite in order and well deserved.

Why Republicans really don't want to see the economy improve.

Michael,
I will believe your argument, when you can show a study(from an impartial source) that proves that government spending creates more wealth than tax cuts. In addition, the uncertainty of the moves and regulations that the Obama administration is proposing, is further restraining job and busness growth. Thirdly, Keynesian economics is related to stabilizing monetary policy and the government having a limited number of jobs. Biggest point here, outside of national defense, the government never does a better job than the private sector or creates wealth.

I would only say that all presidents promise deficit reduction – and almost always fall short.

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I would only say that all presidents promise deficit reduction – and almost always fall short.

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"A nuclear explosion over the leak," he says, nonchalantly puffing a cigarette as he sits in a conference room at the Institute of Strategic Stability, where he is a director. "I don't know what BP is waiting for, they are wasting their time. Only about 10 kilotons of nuclear explosion capacity and the problem is solved."

A nuclear fix to the leaking well has been touted online and in the occasional newspaper op-ed for weeks now. Washington has repeatedly dismissed the idea, and BP executives say they are not considering an explosion--nuclear or otherwise. But as a series of efforts to plug the 60,000 barrels of oil a day gushing from the sea floor have failed, talk of an extreme solution refuses to die.
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For some, blasting the problem seems the most logical answer in the world. Mikhailov has had a distinguished career in the nuclear field, helping to close a Soviet Union program that used nuclear explosions to seal gas leaks. Ordinarily he's an opponent of nuclear blasts, but he says an underwater explosion in the Gulf of Mexico would not be harmful and could cost no more than $10 million. That compares with the $2.35 billion BP has paid out in cleanup and compensation costs so far. "This option is worth the money," he says.

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The US will sooner or later have to life within it's means, i.e. not spending more than what is available. The sooner this is recognized, the less painful the consequences of the deficit/credit driven party we had during the last 25-30 years.

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cosmetics,Cruise SS 2011 accessories increased by

13% growth in the jewelry and watches 18%. Financial crisis can

not stop the fashion sense,

href="http://www.louisvuittonbeltforsale.com/louis-vuitton-bags-

c-2.html">Louis Vuitton Bags fashion, luxury goods market

continues to move forward.


Bain & Company's survey also showed that men accounted for

50% of the luxury luxury market,

Beijing R & F

Properties,2011 Louis Vuitton according to

company sources, sales offices and R &

href="http://www.hoganshoes2012.com/hogan-shoes-new-arrival-2011

-c-42.html">Hogan Shoes New Arrival 2011 F to fill the world

famous luxury brand Le Fang Fang Shenglong hold a meeting

entitled "R &

href="http://www.louisvuittonbagshotsale.com/mbt-mens-shoes-c-

1.html">Cruise SS 2011 F Italian-style luxury,

href="http://www.hoganshoes2012.com/hogan-ladies-shoes-hogan-

ladies-dancing-shoes-c-46_50.html">Hogan Ladies Dancing Shoes

making it difficult to develop and maintain a high level of

customer loyalty level. From the general brand management,

href="http://www.hoganshoes2012.com/hogan-ladies-shoes-hogan-

ladies-sport-shoes-c-46_59.html">Hogan Ladies Sport Shoes

luxury brand management is completely different, and far-sighted

brand manager is the key to success,

href="http://www.hoganshoes2012.com/hogan-boots-hogan-women-

boots-c-57_58.html">Hogan Women Boots and brand management of

Chinese enterprises often lack the experience and luxury brand

management.

and save me a tonne of time.

Thanks for cleaning this up , been thinking about this for awhile lol, thanks for the infos!

Thanks for cleaning this up , been thinking about this for awhile lol, thanks for the infos!

Nice post! This is a very nice blog that I will definitively come back to more times this year! Thanks for informative post.

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