The Great GOP plan to lead us out our economic mess, one of their own making, was austerity. Sounded good to some on paper, but then the Democrats put a cautious eye to the numbers and discovered it was wrong. It would do more harm than good. But the Republicans and their blind crowd only paid attention to one paper, the one by Harvard professions of economics. It was the Reinhart and Rogoff's research paper.
But the GOP, the party of big business had the upper hand in votes and got some, not all, of their way. Europe wasn't so fortunate. They fell for the US Republican plan hook, line and sinker. Out came the cleaver and cut, cut, cut. So how did that turnout? Sinker.
According to business section of the HuffPo:
In the U.K., austerity has shaved 6 percent from that country's gross domestic product over the past three years, estimates Oxford economist Simon Wren-Lewis. This amounts to $143.5 billion in lost income during that time, or nearly $5,400 per U.K. household.
Italy's debt recently crossed 130 percent of GDP, a new record.
Greece's economy is so weak that it will likely fail to meet its creditors' targetsfor growth, raising the risk that it could default on its debts.
The yield on Portugal's 10-year bond shot past 8 percent on Monday, a red line that in the past has signaled a country is about to need another bailout. High interest rates make it even harder for governments to pay back their creditors.
Summation. It sucked. These countries are reeling on the precipice of disaster. If they could do it over again, they would love to, only not going the austerity route, but rather way we did during our great depression. Government spending, bringing us back to health -- infrastructure, training, government jobs.
What is simpleton John Boehner not getting? He's threatening again to not raise the debt ceiling. He proposes austerity.
Everyone's heard the old bromide on the secret to success, "Buy low, sell high." Right now loans and borrowing for the government are still at near record lows. So to add onto debt when it's this cheap, is basically buying low. When our productivity, our jobs numbers and our gross incomes rise, so will revenue. We will be riding high. This isn't a fantasy out of PAPER MOON, it's an optimistic look at the future. (Something Boehner's never been accused of). And when interest rates go up, we'll still be paying low rates and we'll have the money to make those payments, pay down the debt and cut back on larger government. We'll also have cleaner air, better roads, safer bridges. Did the Speaker forget how the Civilian Conservation Corps (CCC) and the WPA, the Works Progress Administration pulled us up and out of the Depression? We don't need something quite as severe, but we need guidance, direction and working together. Speaker Obstruction of the GOP isn't providing any of it. Let's dump the chump.
The economy needs a kick in the shorts. Spending now will bring in many more dollars down the road, not to mention lowering costs as gainfully employed workers buy more things, spend more money, are removed from the public assistance and generally goose along the economy.
As for Europe, just look at their impending collapse. We don't need to join them on the mat for a ten count. Boehner is WRONG about raising the debt ceiling. It's a necessity and must be done. But he's seemingly too stubborn to admit a mistake. It takes a big man to do that. Boehner isn't that big man. He's still trying to defend his actions on:
The intellectual underpinnings of the austerity movement took a serious blow earlier this year when a paper found that Reinhart and Rogoff's research was riddled with errors and omissions. A series of subsequent papers suggested the Harvard economists had badly misinterpreted their data.
Even faced with the repudiation of his basis for his economic plan, The Bonehead won't give in. Well I don't want to see us fail. Maybe it's just best if Boehner does. Voters, are you ready?