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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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.

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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.

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