As
Paul Krugman wrote earlier this week, in the New York Times, while a Democrat rests his head each night in the White House, the United States is currently operating with a Republican economy. After winning the House of Representatives in 2010, the GOP brokered a deal to keep the Bush tax cuts in place, which has reduced the tax burden as a percentage of GDP to its lowest point since Harry Truman sat in the White House.
At the insistence of the White House, Congress also agreed to extend unemployment benefits and enact a payroll tax cut – measures that provided a small but important stimulus to the economy, but above all, maintained the key GOP position that taxes must never go up.
But as Congress giveth, Congress also taketh. The GOP's zealotry on tax cuts is only matched by its zealotry in pursuing austerity policies.
In the spring of 2011, federal spending cuts forced by Republican legislators took much-needed money out of the economy: combined with the 2012 budget, it has largely
counteracted the positive benefits provided by the 2009 stimulus.
Subsequently, the GOP's refusal to countenance legislation that would help states with their own fiscal crises (largely, the result of declining tax revenue) has led to massive public sector layoffs at the state and local level.
In fact, since Obama took office, state and local governments have shed 611,000 jobs; and by some measures, if not for these jobs, cuts the unemployment rate today
would be closer to 7%, not its current 8.2%. In 2010 and 2011, 457,00 public sector jobs were excised; not coincidentally, at the same time, much of the federal stimulus aid from 2009 ran out. And Republicans took over control of Congress.
These cuts have a larger societal impact. When teachers are laid off, for example (and nearly 200,000 have lost their jobs), it means larger class sizes, other teachers being overworked and after-school classes being cancelled.
So, ironically, a policy that is intended to save "our children and grandchildren" from "crushing debt" is leaving them worse-prepared for the actual economic and social challenges they will face in the future.
In addition, with states operating under tighter fiscal budgets – and getting no hope relief from Washington – it means less money for essential government services, like help for the elderly, the poor and the disabled.
https://www.theguardian.com › commentisfree › jun
Jun 9, 2012 — Be it ideology or stratagem, the GOP has blocked pro-growth policy and backed job-killing austerity – all while blaming Obama.
