How could I disagree with this headline? “Analysis: Washington becomes the biggest risk to the U.S. economy.”
Because it isn’t actually an analysis of Washington’s toxic destruction of the world economy; it is an attack on anyone who might do anything to try to fix it.
Consensus may be hard to find in Washington these days, but many corporate executives and economists seem to agree on one point: the biggest risk to the world’s largest economy may be its own elected representatives.
Down-to-the-wire budget and debt crises, indiscriminate spending cuts and a 16-day government shutdown may not be enough to push the U.S. economy back into recession.
But Washington’s policy blunders in recent years have significantly slowed economic growth and kept roughly 2 million people out of work, according to recent estimates.
Steep spending cuts are a big reason. But the governance-by-crisis also may be prompting businesses to sit on their cash rather than building new factories, buying more equipment and hiring more workers, some economists say…
“We have crisis after crisis after crisis and it has a corrosive impact on the economy,” said Greg Valliere, an analyst with Potomac Research Group. “If you’re a business, how do you make plans in this environment?”…
We have these multiple crises because the media-business-federal spending combine refuses to admit that we need to take a chainsaw to spending to really fix the problem. So they are blaming the few people that are sometimes willing to actually make cuts. If they don’t want spending cuts then they want a future of crises, small and inevitably big.
Leading chief executives agree.
“Most CEOs I speak to in the United States say they’re seeing a slowdown in business because of this,” said Laurence Fink, the CEO of giant asset manager BlackRock Inc, in an interview on Wednesday. “I was on a conference call with many of them, and I heard across the board, a slowdown from the American consumer because of this narrative, so it’s having an impact on our economy already – and it’s going to have an impact on job creation at a time when we need more job creation.”…
This is what CEOs care about. They want broke consumers to hide in a personal fantasy and buy stuff they can’t afford and don’t need. Just use those credit cards! Any politician who, seeing the country going down the toilet, tries to solve any problems is just guilty of frightening the masses. Frightened masses don’t give CEOs money as easily so any politician that makes them afraid is the enemy.
Since the financial crisis eased, Washington has sent out one jolt after another. Democrats passed sweeping reforms of the healthcare system and the financial sector in 2010 which, whatever their merits, imposed wrenching changes on two pillars of the United States’ post-industrial economy.
Public unease with the healthcare law helped Republicans win control of the House of Representatives in 2010, ushering in an era of divided government that has led to repeated standoffs over taxes and spending. A near-shutdown in April 2011 led to the debt-ceiling impasse in July and August of that year, which took the country to the edge of default and prompted the country’s first-ever debt downgrade.
Like this most recent crisis, Congress averted disaster at the last possible moment. But the brinkmanship pushed consumer confidence to rock-bottom levels, where it remained for months. The S&P 500 tumbled 17 percent and took more than six months to recover its gains….
Love the admissions about Obamacare! But the S&P 500? So what? The only reason the stock market shows life is because Bernanke keeps printing money to inflate stock bubbles. If your little delusion that the stock market is showing real value gets occasionally knocked by reality, consider that practice for when the truth really gets revealed in the future.
And for the record, the idea that anyone has imposed “sweeping reforms on the financial sector” is implausible. To the extent that it may be true, it may explain all the whining that the economists and the CEOs are doing in this article.
That debt-ceiling deal called for steep cuts to national defense, highway construction, scientific research and other forms of discretionary spending that Congress must approve annually…
Because it is totally necessary to subsidize corporations so they can patent as their private property inventions and discoveries the government helped fund.
In a report released on Monday, Macroeconomic Advisers estimated that 1.2 million more Americans would be working today if Congress had kept discretionary spending at the levels that were in place in 2010…
Zandi estimates the fiscal austerity has cost 2.25 million jobs. Without those measures, the unemployment rate would stand at 6.3 percent now rather than 7.7 percent, he says…
Do you see that? In this anemic recovery we should be going into debt faster in order to produce make-work jobs we don’t need. Remember, we just laid off a bunch of “non-essential” Federal Employees. We are at least $17 trillion in debt and we can not only afford non-essential workers but we should have more of them?
The International Monetary Fund called the United States’ deficit-reduction efforts “excessively rapid and ill-designed” in June and said the sequester cuts would nearly halve U.S. economic growth this year…
This, from the same people who, when we implode, will impose horrific “austerity” on us and dictate policy to our government just like they are doing to European governments.
Meanwhile, Congress has punted on other important legislation like immigration reform that could boost the economy…
Right, and Obamacare will reduce the deficit. Sure.
Construction firms have seen federal work plummet over the past several years…
There’s more turbulence on the horizon. Simonson said lawmakers may not have the stomach to avoid further cuts on transportation spending when they take up the issue next year.
So according to Reuters, economists, and CEOs, The salvation of the economy lies in increased spending and increased debt. This is the insane philosophy that lies behind the current attack on the Tea Party. This is what lies behind the “Anarchist” smear. If you don’t want perpetually increasing spending backed by perpetually mounting debt then you are an anarchist and an enemy of the economy.
Contemplate this: the editorial staff and reporters at Reuters think this is an intelligent news story for intelligent readers.
To navigate in our present world you need to understand that people all around you, especially those who think of themselves as sophisticated or educated, have given themselves over to destruction. They really want to simply keep the money/debt flowing and hate anyone who tries to save them from this suicide.
Think Ted Cruz as Noah. Except God doesn’t need to send rain. These people are insisting on creating the flood.