Posted by: James Atticus Bowden | May 20, 2012

Growth vs Austerity

Growth vs Austerity is a phony baloney choice

Growth vs Austerity is a false choice.  A false dichotomy which deceives.   These are NOT the economic choices for America and Europe.  This isn’t the difference between Barry Soetero’s and Mitt Romney’s economic policies.

Republicans need to not be suckered into discussing issues in these terms.  Constitutional Conservatives need to school them if they don’t know better.

Government spending doesn’t equal growth.   Government spending kills capital – and more jobs than it creates.   Government spending creates destructive debt and inflation.  The growth shown in the Presdent’s TV commericials – 22 months of job growth if I remember correctly – doesn’t account for the people who stopped looking for jobs.  It doesn’t show the total number of jobs decreasing.  Every job that government spending claims as gain – cost 3 to 4 jobs killed by taxes or created 4 times more national debt than personal wealth.

Austerity doesn’t mean doing without.  It means government doing with less.   The capital saved creates jobs.

The growth caused by government spending is like growing a cancer.  Cancerous growth.  Those are the terms Republicans should use to argue policy.

Cancerous Growth vs Wealth and Job Creation.  That is the choice for America and Europe.

Correct any person talking in terms of growth vs austerity.  Whether they are journalists, policy wonks, politicians or any other clown.  Tell them the choice is cancerous growth vs real capital and job creation.

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Responses

  1. Jim, could you give a source to the statement, “every job that government spending claims as gain cost 3 to 4 jobs killed by taxes or created 4 times more national debt than personal wealth.”

  2. John: Herman K. Bator’s Macroeconomics class, JFK School of Government, Harvard University, 1980. The multiplier effect for government spending is that every dollar spent produces less than 28 cents in stimulus. Also, for every 150 million taken out of the economy in taxes, 5k jobs are lost.

    I rounded the less than 28 sents to 25 cents for clearer math. And, today, the loaded labor rate for a job is probably $50k not $30k, so every $150 million taken in taxes probably kills 3k jobs.

  3. Reblogged this on Citizen Tom and commented:
    Here the blogger provides a simple explanation of why too much government spending is wrecking our economy. Just as we set priorities on our personal spending — and do not buy what we cannot afford — we need elected officials willing to that is all we can afford.


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