Friday, February 25, 2011
It looks like we are headed for a slowdown, our economy will be growing but not at the rate needed to sustain job growth. The effects of oil are going to weigh down the economy, but also people don't realize that cutting government spending will also play a large role in the slowdown. To ignore what is happening in UK following their budget cuts is foolish. This is primarily why, in class, I focused on cutting long term spending (e.g. cuts in defense, medicare, and social security). Cutting spending during a recovery will hamper and delay the recovery. If the cuts are large enough it could result in a second recession. What this will likely mean, higher unemployment, lower income, lower tax revenue, and smaller deficit reduction than expected. Democrats over used their power the first two years since Obama took office and it appears Republicans are on the same path of irresponsibility. Yes we need to reduce our deficit, but not by cutting spending today. Don't we all just love government.