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
- Manchester Community College graduates told ‘speak your minds’ - 0
- Colby-Sawyer lays off 16 staff workers to balance budget - 1
- White Mountains school board expands preschool - 0
- Milford team wins seatbelt challenge - 0
- Activist resident launches alternative UNH logo search - 1
- Loeb School offers workshop on producing newsletters - 0
- Threats at Goffstown High ‘not credible’ - 0
- Pushback against logo plan for UNH heats up - 1
- Nashua elementary teacher honored for real-world lessons - 1
READER COMMENTS: 0
- NHIAA Div. I Track: Lynch, North boys prevail - 0
- Two found dead in Belmont; one man detained as part of investigation - 0
- Weather may be more like Veterans Day than Memorial Day - 0
- Awards cap city's Small Business Week - 0
- Rock Cats-Fisher Cats suspended - 0
- Budget plan presses NH hospitals to join managed care networks - 0
- Students hold ceremony to honor flags - 0
- This week's Rare Bird Alert - 0
- McCafferty nominated for District Court judge position - 0
Concert to aid Nashua man with rare disease
NHIAA Scoreboard, May 24, 2013
Win tickets to see American Idol Live!
Just say it: Our fight is with radical Islam
The casino vote: The House did its duty