deficit hysteria

The brutal consequences of Republican deficit hysteria

In case you've been thinking that the impending sequester is just the bitter medicine America needs to get its fiscal house in order, you might want to reconsider. This bitter medicine will knock the house off its foundation almost certainly trigger the next Great Depression.

Media Whistling Past The Graveyard

Just because the media is tiptoeing around mentioning this doesn't mean I have to. From S&P's explanation of the U.S. debt downgrade:

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act.

And this:

What Republicans don't want you to know about the federal deficit

Every one of these Republican talking points is demonstrably a lie.

  • When the government spends in deficit, that means I am being taxed more.
  • Cutting the deficit by reducing spending puts money in my pocket.
  • You can’t spend your way out of a recession.
  • Cutting government spending frees up resources for the private sector to grow.
  • The debt has never been this large.
  • We have largest debt in the world.
  • The debt must be repaid.
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