Keynesian economists have been calling (screaming really) for more stimulus to get the economy moving. But the GOP deficit howler monkeys won’t agree so we’re all stuck living in a world of stupid. In an editorial from the Saturday’s New York Times, the editors recognize the ongoing economic struggles facing America.
And the blame falls squarely on the narrow bony shoulders of the Republicans and the Democrats who refuse to stand-up to these economically ignorant bullies.
The way to revive sustainable growth is with more government aid to help create jobs, support demand and prevent foreclosures. As things stand now, however, Washington will provide less help, not more, in 2012. Republican lawmakers refuse to acknowledge that government cutbacks at a time of economic weakness will only make the economy weaker. And too many Democrats, who should know better, have for too long been reluctant to challenge them.
The drag from premature cuts is significant. Waning stimulus spending subtracted an estimated half a percentage point from growth in 2011; this year, cutbacks will very likely cost the economy a full percentage point of growth. That means the best-case economic projection is for a new year of anemic expansion and high joblessness — muddling along with growth of about 2 percent, which is too weak to push unemployment much below its current 8.6 percent.
Yes, the Republican party remains the party of EPIC FAIL.