The future spending cuts and government austerity program will cause the economy to shrink in the next few months. Congress hasn't been able to come to budget deal yet. Republicans are not willing to eliminate tax loopholes for big corporations which means the money which could have been used to compensate for the spending is not going to be raised. As a result, jobs are going to disappear.
I strongly believe that government should reduce the spending, but is it the right time to cut the spending?
Republicans can be blamed for the situation but isn't it the responsibility of Democrats to come up with a better alternative to strike a good budget deal? (Link)
I strongly believe that government should reduce the spending, but is it the right time to cut the spending?
Republicans can be blamed for the situation but isn't it the responsibility of Democrats to come up with a better alternative to strike a good budget deal? (Link)
"Congress should be thinking about ways to accelerate the economy, instead of remaining preoccupied with a short-term deficit. " But how do we do that? It seems that any suggestions offered the Republicans shut down. The author mentions that a revenue increase replacement of half or more of the spending cuts would have a large affect on reducing the job losses; lowing the amount of spending from the economy to reduce the deficit. No one can seem to agree on a solution leaving the expected high unemployment rate to come, (especially in the defense sector), unchanged. Are there more options for the democrats and republicans to discuss?
ReplyDeleteThe loopholes for big businesses should be closed. I think that it's ridiculous that they still exist. Some very rich, selfish men want to make a few extra bucks, and are damaging the whole US economy by doing so.
ReplyDeleteI don't really know if there is a proper time to cut spending, so now is as good as ever. This budget ceiling issue has dragged on long enough. I really hope this all gets resolved soon.
If the Democrats can somehow find a solution to get the Republicans on their side, this process would go a whole lot smoother. I believe since we have a budget deficit, cutting spending might be a good idea and it might not. That might cause a ripple effect in the system. Somehow we need to find stability within the economy and the political parties and we are far from that.
ReplyDeleteAgree with Maureen about the politics of the republicans. Much of the republican party has said that they would not agree to any revenue expansion even with the compromise of spending cuts. Stimulus has helped the economy and arguably much of this talk about debt and deficit "crisis" has stifled growth that could have been with continued stimulus.
ReplyDeleteI do not believe that the loopholes should be closed. Corporations who have this extra money will most likely use it to expand their businesses, which will then in turn create more jobs. Even if they don't use the extra money to create new jobs, they are still going to spend it somewhere. This extra spending will benefit other businesses, which will then create jobs somewhere else. Putting extra taxes on the innovative heads of corporations just doesn't seem like the answer to me. That almost seems like punishing someone for doing a really good job.
ReplyDeleteI think the lack of compromise and action is hurting us more than either plan could. Nothing that they are deciding on is permanent. The whole dynamic in Congress is a major issue that we are facing today, in my opinion.
ReplyDelete