Today’s Washington Times, an ultra-conservative paper, has this astonishing headline: Recovery slows down as stimulus funding expires,
The U.S. economic recovery downshifted dramatically this spring as various stimulus measures enacted by Congress ended or started to wane.
The sudden softening of growth, which also coincided with the outbreak of a debt crisis in Europe, is prompting many economists to caution against withdrawing stimulus too soon, and some are even calling for another round of government action to prop up the economy for a while longer.
As astonishing as it is to see a reality-based article in the Washington Times, there is more. This, from the story,
Republican economists say that more stimulus spending is not the answer.
They say small businesses, which ordinarily do the most hiring in the U.S., have been spooked by the heavy-handed regulatory programs that President Obama and the Democrat-led Congress are enacting and/or considering, and are holding off hiring because of that.
“Its natural that employers are afraid to hire since their taxes will go up on January 1, 2011; their energy bills will rise if Congress passes President Obama’s requested cap-and-trade legislation; their ability to borrow will decline if the financial regulation bill is signed into law; and, if they have a work force of more than 50, they will face a $2,000 penalty per worker if they don’t provide the right kind of health insurance,” said Diana Furchtgott-Roth, senior fellow at the Hudson Institute and former chief economist at the U.S. Labor Department.
She said Congress should consider “lower taxes, lower spending, and less regulatory red tape” to stimulate the economy.
Quoting Republican economists reads like an Onion satire of Republican economists. And their analysis of the problem?
“Prior efforts to stimulate with deficit spending, absurdly low interest rates, and a series of government programs designed to support the housing and automobile markets have failed to create any meaningful forward momentum,” said Peter Schiff, president of Euro Pacific Capital and a former Republican legislative candidate.
If Congress takes the current economic weakness as a cue to simply spend more, it could lose the confidence of investors in U.S. debt, he said. The economy’s problems grew out of too much spending and debt in the first place, he said.
“Could” lose the confidence? They are so confident that they are buying Treasury debt at the lowest interest rates ever, but they “could” lose confidence? Stimulus didn’t “create forward momentum? The right side of the following chart reflects the effect of the stimulus.

If anything the stimulus just was not large enough — which most economists said at the time — and has run out too soon. But it was weakened by failed bipartisan outreach and anti-government conservative ideology. It included tax cuts, which leave nothing behind, and was cut back by calls to “spend less,” which goes against the point of a stimulus.
As for the claim that the economy’s problems were caused by “too much spending,” the collapse occurred before Bush’s last budget year, with its huge $1.4 trillion deficit, and was the direct result of conservative anti-government, deregulation ideology. (The results from President Obama’s first budget year will be reported after the of September.) For Republicans to claim that the financial collapse is the result of their own spending while criticizing President Obama is an odd way to criticize.





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But but but Tax cuts solve EVERYTHING, right? Right?
Or not.
They don’t consider it “their” spending then or now. When they’re in power deficits don’t count. Deficits as everyone knows from watching Herr Beck are only bad when D’s have power.
Well, republican are….odd……..
Isn’t the Times Rev Moon’s paper?
As someone who owns a small business, I can say unequivocally that I’m attempting to emigrate away from the United States because of the small business hostile environment in the United States created by the crony capitalism of both Republicans and Democrats, and the complete lack of interest on behalf of the Democrats to do anything other than codify and rubber-stamp the Republican fascist wet-dream.
It’s well beyond the point that I’ll be successful despite being in the U.S., not because of it.
You will be as shocked as I to learn that Diana Furchtgott-Roth was
a featured speaker at AmericaSpeakingOut.
We have seen the utterly discredited Ms. Furchtgott-Roth before. I particularly like this appearance.
Nathan, write something on that for Seminal.
Expecting cons to employee inteligence or logic to anything is really far beyond the reach of what they are capable of.
nice!
“Isn’t the Times Rev Moon’s paper?”
Yes, that’s why I was sp surprised to see this there!
I guess if you do not provide any health insurance for your workers, you may lose something here – - but guess what, you should. I happened to just be reading something in Kiplinger and there is some modest tax credit to offset some of the cost of health insurance for the small business employer. There is a penalty of $2k per employee for employers with over 50 employees and over the first 30 if no insurance is purchased but there are some ways to lower that cost (ie 40k for the first 50 employees). And let’s not forget there is a tax deduction as well. I don’t have any sympathy for the employers, poor bastards. If you don’t buy the insurance then I pay it through higher medical costs. Don’t get me started on stimulus.
Republican Economics In the News:
From “Stagecoach” (1939) by Dudley Nichols and Ben Hecht.
GATEWOOD: “I can’t get over the impertinence of
that young lieutenant! I’ll make it
warm for that shavetail!
I’ll report him to Washington! We
pay taxes to the government and what
do we get? Not even protection from
the Army!
I don’t know what the government’s
coming to! Instead of protecting
businessmen, it’s poking its nose
into business.
Why, they’re talking now about having
bank examiners…
(he snorts)
…as if we didn’t know how to run
our own banks.
I actually had a letter, from some
popinjay official, saying they were
going to inspect my books! I have a
programme, gentlemen, that should be
blazoned on every newspaper in the
country.
America for Americans! Don’t let the
government meddle with business!
Reduce taxes! Our national debt is
shocking…
…over a billion dollars! What the
country needs is a businessman for
President!
I would, but I’d rather put my creative energy into drafting popular initiative language to try and make Oregon better, so that I’m not forced to leave my friends and family.
On the topic of economic reporting, my concern is the crazy things stated in papers and news sources which are not labeled as right wing.
NPR- Morning Edition, Market Place, Talk of the Nation…. these shows pump out pure propaganda and label it as economics. Fresh Air is notably better but covers a wide variety of topics and doesn’t touch on the economy with any regularity.
Washington Post – Pete Peterson now has his hooks into the WP and it’s not difficult to tell where that train will be headed.
watertiger is upstairs!
Late Night: The U.S. Attorney General’s Office “Uses a Nuke to Kill an Ant”
As 6-28-10 this shows 43.28% of stimulus spent.
See http://projects.propublica.org/tables/stimulus-spending-progress
Who allocated the dollars?
great graphs that you have been including with your posts.
they make your point very clearly.
Is there a direct link to that graphic not hosted by FDL? I would like to use it in an argument, but the people I am arguing with will immediately shoot it down if they know it came from this site.
A new oxy-moron: Republican Economics!
Up there in the firmament with Military Intelligence and Honest Politician.