Republicans have been insisting that U.S. has a major spending problem. They have been saying that through the whole economic recovery, in fact their obstructionist tactics have even been said to slow down the recovery. House Republicans offer a budget that contains Draconian levels of spending cuts to domestic spending, some Republicans including Rand Paul asked for larger spending cuts.
According to the CBO, excluding wars and disaster relief funding, Americas discretionary spending has grown at a slower rate than inflation since 2097 and now makes up a smaller share of the economy that it did before the Great Recession. CBO Director Dough Elmenforf wrote; Excluding appropriations for those purposes, discretionary budget authority rose from $892 billion in 2007 to $987 billion in 2013, an increase of about 11%. During that period, prices (as measured by the CPI for urban consumers) rose by 13%, a nominal GDP increased by 16%. As a result, discretionary appropriations, based on the House passed appropriations for 2013 and excluding funds for overseas contingency operations and hurricane relief- declined by 2.2% in real (inflation adjusted) terms between 2007-2013 and dropped from 6.4% of GDP to 6.2% of GDP over that period.
Spending levels have plateaued in recent years as Washington has focused on spending and debt reduction. That as I said earlier has hampered our recovery from the recession. Government spending has typically driven recoveries in the past, this time spending cuts have, of course, hamstrung our recovery. Further spending cuts to programs that help Americans stay on their feet would only exacerbate the problem. With low borrowing costs and high unemployment, the U.S. has a chance to make investments to help boost growth, therefore creating more jobs. Instead Republicans are focused on spending and a manufacturer debt crisis.
Despite the hand wringing from conservatives and media types about the federal debts and defecits, any research will make it clear that Americas problem isn’t that the government is spending too much. Rather, it is the government isn’t spending enough. Investments into infrastructure, education, teachers, public workers and other programs could boost the economy. Instead by cutting spending Washington turned its full attention to spending cuts and the results had been dire. Republicans clamor for austerity, even if it is predictable to anyone who has read about the plight of the European economy over the last few years, where austerity is king.
The only way to truly balance the budget is to have a balanced plan with spending cuts and increased revenue I.e taxes. Democrats and Patty Murray offered such a plan which was meant with conservative disdain. Our current course may not very as bad as Republicans say.
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