It’s probably too late to talk any sense into the GOP Congress and the Democratic enablers, but this just might make a difference…
I’ve been saying all along, they are doing exactly the opposite of what needs to be done to drive an economic recovery. You have to spend to create jobs, which will increase purchasing power to drive demand for consumer goods and increase tax revenues.
You worry about deficits once the economy has recovered. And the deficit will be a much smaller problem as increased revenues from taxes-income and sales- will ease the burden on state, local and federal governments.
Then you repeal the Bush tax cuts, end the wars in Afghanistan and Iraq, remove the cap on Social Security withholding taxes and it’s all fixed.
Why don’t they just listen to me? And Paul Krugman. And now, Bill Gross…
From TalkingPointsMemo:
One of the most influential investors in the world of finance has a message for lawmakers — particularly conservative lawmakers — on Capitol Hill: rejoin the real world.
In a prospectus for clients, Bill Gross, a co-founder of investment management giant PIMCO, says members’ of Congress incessant focus on deficit — and in particular, the manner in which they obsess about deficits — is foolhardy, and a recipe for disaster. What the country needs, Gross said, is real stimulus now, and a measured return toward fiscal balance in the years ahead.
More: PIMCO Founder To Deficit-Obsessed Congress: Get Back To Reality | TPMDC.
Lost in the 21st Century 