Thursday, August 4, 2011

Rachel Maddow explains job-killing spending cuts

Rachel Maddow and her guest from the Center for Budget Policy Priorities discuss how cutting spending during a recession hurts short term economic growth and kills jobs. They also discuss how cutting spending during the Great Depression reversed economic growth.

Most of the cuts in the debt ceiling deal don’t kick in for a couple years. That’s when they will have a large dampening effect on the economy. Beware the lessons of 1937. 

On Monday, guest host Steve Hays of the Nation (who now has his own show on MSNBC which is sadly in the wee hours of the morning on the weekend) showed how republicans have repeatedly created manufactured crisis in order to secure their policy goals.

This is a terribly troubling precedent. The battle over the 2012 budget is about to begin. Let’s hope the president stands firm against any new job killing spending cuts. 

CORRECTION: This post previously stated that the Social Security payroll tax holiday hastens the date of exhaustion of the Social Security trust fund. It does not. The legislation that authorizes the tax holiday requires that money will be borrowed to make up the difference. (Associated Press) (

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