Ben Bernanke said that tax increases and spending cuts during slow economy can reduce economic growth by 1.5%. He told the Senate Banking Committee that the Fed’s low interest rate policies have carried an awful lot of the burden to drive economic growth. As well as the Fed’s $85 billion a month bond buying program. He said the Fed would happily share the burden with a gridlocked Congress.
Congress focus on the Federal Defecit has been detrimental to economic growth. Republicans have pushed for austerity, wide, deep sweeping spending cuts. They have also supported the Sequester, which has caused many thousands of furloughs, as well as job losses. Democrats and President Obama have pushed for tax increases. They are trying to raise taxes on the super wealthy, as well as trying to get big corporations to pay their fair share of taxes.
Republicans said that they wanted dollar for dollar tax increases to spending cuts. They got $4 in spending cuts to $1 in tax increases. Any issue President Obama stands for Republicans stand against. Even if Republicans have supported it recently. Republicans have shot down 2 seperate Jobs Bills, one a Veterans Job Bill, that would have created more than 1 million jobs. Republicans inability to compromise has caused the gridlock plaguing America.
Senate Republican Bob Corker said Congress has grown to dependent on the Fed’s efforts to drive growth. Senate Republican Tom Coburn said ” We have let you down. The kindergarten of Congress has let you down by not doing the things to create confidence in the business community.” These 2 Republicans say this, yet support the Republican agenda of obsuruction. They have presented 44 anti-abortion bills, 99 bills about religion, several hundred spending cut bills, 445 Congressional hearings and ZERO bills to create jobs. Democrats have proposed tax increases.
While I realize Ben Bernanke may be uncomfortable calling out a party, someone needs to. President Obama and Democrats do it, but people are swayed by main stream media calling them horrible people. In many cases they tell half the story that suits their political agenda. I do not believe that Democrats didnt do anything wrong. They have screwed up quite a few times. But that pales in comparison to the Republicans intentionally harming the country to hurt President Obama. That is not a successful policy. In fact it has hurt American and no one is holding them responsible.