Wednesday, November 03, 2010
The Republicans who have taken over congress in Washington are proclaiming two mutually exclusive goals: Cut government spending, and decrease unemployment. But the problem with the economy is not that small business and the wealthy don't have enough money. The real problem is slack demand resulting now from job losses and the housing mess. The Republicans have additionally taken over 17 state legislatures, including Minnesota, meaning decreased spending and public sector employment across the country. There is no way the Republicans can alleviate unemployment or the pain of the housing meltdown by reducing government spending. In a nutshell, the Republicans will be bringing on the pain. The only question is whether the Republican Doomsday Machine can somehow spin the mess in 2012 to blame Democrats.
Posted by Rob Levine at 11:03:00 AM