Republicans have been screaming, whining, and demanding more spending cuts, despite the fact that austerity does not work:
- Krugman, take a victory lap: University Grad Student Debunks Major Austerity Theory by Exposing Flawed Stats.
- Researchers: Austerity is “having a devastating effect on health in Europe and North America, driving suicide.”
And this from the IMF:
May 20 (Reuters) - The International Monetary Fund on Monday said the United States was getting carried away with a government austerity drive, offering some of the institution's bluntest criticism yet of Washington's rush to cut its budget deficit. [...] A drop in federal spending led the economy to barely expand in the fourth quarter of 2012.
Under President Obama's watch, the deficit has been shrinking, some economists say too quickly. But that doesn't stop the GOP from continuing to go all Anti-Obama on us and insisting that he's a big spender who needs to make even more cuts.
Let me put this in professional financial expert jargon: WTF?
New Treasury Department figures confirm what the Congressional Budget Office (CBO) projected in the spring: the budget deficit for fiscal year 2013 will be dramatically lower than it was the past four years. [...]
These figures reinforce a key point in the argument for resetting the fiscal policy debate: Congress can afford to invest in job creation right now. While Republicans remain committed to the idea of austerity (without being able to pass specific appropriations bills that adhere to the abstract cuts imposed by sequestration), falling deficits and debt levels undercut their argument. [...]