New York (CNNMoney) - The push to slash federal spending in the name of curbing deficits and getting rid of "big government" could hit the private sector.
The reason: The federal government now spends more than $500 billion a year - or roughly 14% of the federal budget - on private-sector contractors.
We 'slashed' the republican way in 1929 and ended up with a depression, and Europe recent;y tried to cut the republican way, with almost similar results. We would be in the same lousy republican mess if not for President Obama and the stimulus.
Of course, cutting federal budget will impact the private sector, and not just because of the money spent on private contractors. You are going to cut middle class jobs for the most part, which will put a dent in middle class spending and consumer demand. The economy will slow and eventually drag itself down into recession, which the Republicans ill naturally blame on Democrats.