Spending cuts: Both sides exaggerate impact
March 3rd, 2011
03:23 PM ET
3 years ago

Spending cuts: Both sides exaggerate impact

New York (CNNMoney) - Republican spending cuts will destroy the recovery! Republican spending cuts will revive the economy!

Get ready for more of that kind of partisan rhetoric as the clock ticks down to the next deadline on passage of a 2011 federal spending plan. On Thursday, Vice President Biden kicked off talks with House and Senate leaders of both parties.

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Filed under: Budget • CNNMoney.com • Congress
soundoff (8 Responses)
  1. gt

    are both sides stupid or what...fix the problem .. thats why your elected..

    March 3, 2011 03:27 pm at 3:27 pm |
  2. Sniffit

    edit;

    The argument isn't about how much...at elast not if you avoided having an extra chromosome. It's first about what to cut...i.e., where the cuts should be made. You first have to determine that in order to dertermine how much can safely be cut. Most of us aren't buying one side or the others' slippery slope arguments: we're focused on the FACT that the GOP has specifically targetted the middle-class and poor with their cuts....the very sectors hit hardest by the recession and in need of the most help and support during these tough times.

    First, they told us that "a recession is not the time" to raise taxes on the 2% of the population that is ultra-wealthy and could afford it, so they held everything hostage during the 2010 lame duck in order to force Obama and the Dems to concede to an aggregate $120B extension of the Bush tax cuts, estate tax reductions that effect approximately 0.6% of the country (the wealthiest 39,000 families), corporate loopholes, etc.

    Then, the GOPers/conservatives/Liptonites tell us that about half of what they just gave away to the rich by extending tax cuts that were written by themselves to expire (since they used Reconciliation to force them down everyone's throats)...$61B in cuts is an absolute necessity BECAUSE of the recession (not to mention their bare minimum) AND that those cuts specifically MUST target public education, societal safety nets for the poor, the sick, the veterans, the elderly etc., government worker wages and benefits, collective bargaining rights for government workers, etc. etc. ETC....all things that benefit, bolster and help us even have a middle-class in the first place.

    Then , to top it all off with a steaming turd, when you suggest cutting oil subsidies, farm subsidies, excessive military spending and programs, filling in coroprate tax loopholes, getting rid of deductions that allow the ultra-wealthy to use a good accountant to end up paying a LOWER EFFECTIVE TAX RATE than the middle-class, etc., they go absolutely ballistic and claim it will implode the universe, pay thousands of astroturf commenters to create the appearance of grassroots opposition to coroprate and wealthy favoritism, use 501(c)(4)s to allow corporations to secretly disseminate misinformation and ideological hairbrainery, and blame everyone BUT the people most in control and most responsible for the giant increasing wealth gap that is causing the middle-class to shrink and suffer: themselves, their corporate puppetmasters and the rich benefactors of their a$$backwards policies.

    IF YOU'RE NOT OUTRAGED BY THE GOP, YOU'RE NOT PAYING ATTENTION.

    March 3, 2011 03:52 pm at 3:52 pm |
  3. fayse

    How about cutting the salaries, expenses, staff, perks of all elected officials. They are supposed to be working for us, why should they live better than we do. How about closing 90% of the Military bases located all over the World. Build Military bases along our borders. Just think of the money that would be pumped into our communities instead of foreign countries. I understand that a Country is only as strong as their military but, that military does not have to be on foreign soil. With our technology we could go anywhere in a short time if necessary. Leave Iraq and Afghanistan now. Tunisa and Egypt did not need our help, they brought down their dictators with sticks and rocks. I would not be opposed to giving aid to the Lybians because their dictator is bombing his own people.

    March 3, 2011 04:04 pm at 4:04 pm |
  4. dave

    please let the goverment shut down! a shut down is the best thing that could happen to the middle class. when a bank is in termoil the stock value declines. when the goverment shuts down the value of the american dollar declines for the same reason.the effect would make import goods cost more and american goods cost less. the demand for american goods would put people back to work. over seas investments would cost more if in american dollars because less value in the dollar means less that it can buy over seas. ivestment in american companies by othe countries becomes cheaper and i am sure they won't want to just sit on their investment but would put them to work to grow their money unlike the american rich who seem content to sit on the money. the draw back to the shut down and a decline in the american dollar is that the rich would loose alot of their worth and some could even go broke! this democrat wants a shut down as soon as posible!

    March 3, 2011 04:15 pm at 4:15 pm |
  5. vic nashville tn

    Republicans cut will affect Wal-Mart, K mart, Target, Mc Donald’s Burger king, KFC, Auto Zone …… customers
    That mean it will hurt the recovery

    March 3, 2011 04:23 pm at 4:23 pm |
  6. Four and The Door

    It is not so tough to understand. The economy is not generating enough money to fund the government so the government should do the simple response and spend less as much as it can. If anyone believes that government spending has a huge impact on unemployment, I refer you to the results ( or, non-results as it turned out ) of the $850 billion Grande Stimulus Experiment. Bottom line, cut now and cut deep. We are going in the wrong direction!

    March 3, 2011 04:49 pm at 4:49 pm |
  7. aksdad

    The Republicans are well aware that spending cuts won't immediately revive the economy and may lead to government job losses initially, but over the longer term, 1 to 5 years and beyond, it will stimulate the economy better than anything the Democrats have come up with. Most government spending is a drag on the economy because it takes money from the private sector where jobs and income are created.

    The Democrats' solution is to resist serious efforts to trim budgets, make superficial cuts to give the appearance of doing something, and raise taxes to pay for their profligate spending. Democrats seem completely unaware that this plan keeps us on a quick trajectory to the worst fiscal disaster in history. The European Union won't be able to bail us out like they did Greece because we're the largest economy in the world. The devastation will ripple throughout the world and cause a global depression. If you think 9% unemployment is bad, wait for the real disaster on its way if we don't start reducing the debt. That means not only reducing deficit spending each year, it means NO MORE deficit spending for years to come and that will take some serious cutting of the budget which will hurt a lot of people who depend on the government programs and jobs that get cut.

    A lot of good ideas are coming from President Obama's debt commission, but the President and the Senate are ignoring their recommendations. Good ideas are useless unless you actually implement them, which the Republicans are trying to do.

    March 3, 2011 04:52 pm at 4:52 pm |
  8. Sniffit

    meh..."pay thousands of astroturf commenters to create the appearance of grassroots opposition to coroprate and wealthy favoritism"

    should've said "pay thousands of astroturf commenters to create the appearance of grassroots opposition to ENDING coroprate and wealthy favoritism"

    but you got the point

    March 3, 2011 05:45 pm at 5:45 pm |