Home » Opinion » Editorials
Cliff dwelling: The economy and the sequester
As The Wall Street Journal reported on Wednesday, the decline in Gross Domestic Product "reflects worries about the so-called fiscal cliff. The economy reversed from a 3.1% pace of growth in the third quarter largely because federal government spending fell by 15% and private business, likely fearing slack in demand, let inventories dwindle."
If a reduction in federal spending helped cause a contraction, why don't we just spend more? Because we don't have the money, and because some spending is beneficial, some harmful. Spending on necessary constitutional functions that enable the private economy to operate smoothly (such as national defense) is a positive. Transferring money from productive uses to unproductive ones, or from politically unfavored groups to politically favored ones, is a net negative,
So are tax hikes. Yet the Senate and the White House insist that unless the Republicans agree to even more tax increases than the ones we got this month, they will let the sequester happen. What completely irresponsible brinksmanship.
Once again, Obama and Senate Democrats are holding the economy at ransom, and the ransom they demand is a huge tax increase. It ought to be obvious by now that their primary concern is to raise government revenue, not create jobs. We are getting the economy that results from such priorities.
READER COMMENTS: 0
- Nashua board agrees on school district sexual harassment policies - 0
- Tuition to go down 5 percent at community colleges - 0
- UPDATE: Supreme Court hears from both sides on education tax credits - 1
- Parents speak out against Jewett Street School proposal - 2
- Citizens Bank offers good citizen scholarships - 0
- Justice returns to North Country alma mater to speak to students - 0
- New program recognizes Colebrook students for volunteering - 0
- Belmont students consider dropping 'offensive' mascot - 44
- At presentation at Manchester firm Dyn, middle schoolers learn STEAM Ahead could lead to cool career - 1
READER COMMENTS: 2
- Two crashes reported on I-93 in Canterbury, Londonderry - 0
- Man killed in Seabrook fire identified - 0
- Student brings knife into Nashua school - 0
- Ex-director jailed for theft from Londonderry nursery school - 1
- UPDATE: Search suspended for Northfield man a second day - 0
- Anonymous email was 'malicious,' says Auburn police commissioner - 0
- Senate votes to ban hand-held cellphone use in cars; bill heads back to House - 10
- Auburn town administrator under fire - 0
- Belmont High likely will keep Red Raider mascot - 3
Manchester mayor: 'It's the tax cap budget'
Derry woman accused of burglaries
Decency displayed: Havenstein's nice start