Friday, February 25, 2011

State spending cuts slow US economic growth in Q4

"Deeper spending cuts by state and local governments weighed down U.S. economic growth in the final three months of last year. The government's new estimate for the October-December quarter illustrates how growing state budget crises could hold back the economic recovery..."

What happened to "cut and grow?" That's the House Republican leadership's slogan.

Seems that things are not working out quite the way they planned. States "only" cut about $9 billion in spending in the fourth quarter, but cuts this year are likely to be much deeper.

The sad part about all this is that the folly of their economics, which should be so obvious to everyone right now, will probably be ignored because very powerful people want to see this happen so it's going to happen. And the president is sufficiently misguided as to aid this along. As far as the electorate is concerned, they've been propagandized so effectively that spending cuts are like religion. No one can change their beliefs about that now.


Tom Hickey said...

And the president is sufficiently misguided as to aid this along.

Mike, I think that you are giving Obummer the benefit of the doubt.

I don't have that doubt. The Dems have abandoned the unions as their chief money bags for Wall Street donors.

What Wall Street wants is what Wall Street gets because it has now captured both parties. We the people are screwed.

mike norman said...

Tom, you're right.

googleheim said...

Remember when under Bush II everyone of the republican kind were out there telling everyone to go shopping in the name of patriotism ?

Now it is the opposite because Obama a black person is "in power"

It's not patriotic to shop and stimulate the economy now ?

what hypocrisy against the USA !

and the dept of education is unconstitutional to Ron and Rand Paul and the Rick Perry plus other Republikkkans.