Friday, February 25, 2011
"Pro-business" Republicans elected and businesses savagely cut spending
The Republican gains in last year's midterm elections were the largest seen in 80 years. Remember, they were the pro-business party. Prior to the elections you heard all kinds of stories about how the economy wasn't doing well.
We were told that businesses were scared to make a move because they had an unfriendly White House and Congress. They warned us that the expiration of Bush tax cuts were what was keeping entrepreneurs and CEOs from making spending decisions.
These admonishments came despite the fact that from time that Obama and the Democrats took power, business investment increased by over $400 billion in real terms. All in just a year and a half!
Yet sadly, the White House and the Democrats were so inept at communicating their successes that the public ended up getting brainwashed by the the Republicans' line of tripe. They bought it hook, line and sinker.
And what did the Republicans get as a result of their successful, yet totally twisted propaganda campaign? Huge electoral gains.
The "pro-business" party was elected by a landslide in November 2010. In December we got the extension of the Bush tax cuts and other tax cuts that the Republicans said were necessary to get business investment flowing again.
So what happened? Did all this open the flood gates to massive amounts of new business investment?
No. On the contrary...business investment collapsed in the fourth quarter of last year. Companies cut their spending by over $100 billion. Taht's right...they reversed more than a quarter of their investment spending that occurred over the prior 18 months in a mere three.
It didn't end there. Now the states under these remarkably economically savvy Republicans are cutting budgets in order to grow. But, ooops!...those cuts are resulting in shrinking economic activity.
Where is the president? If I were him I'd be all over this. I'd be shouting it from the rooftops! The pro-business Republcians take over and what does business do? It cuts their spending and investment. You got that...CUT!
More of this madness is yet to come as Congress gets set to unleash their own "Wisconsin" on the entire nation. With the evidence piling up all around that this austerity is a disaster, you mean to tell me that there is not one person out there capable of explaining the folly of all this? I mean, God, there's certainly enough evidence to make the case.