Reuters Analysis: Draconian Cost-Cutting Could Be Worst Thing We Could Do Right Now

[Hissyspit]

http://www.rawstory.com/rs/2011/07/08/analysis-budget-cutting-could-cripple-recovery

Analysis: Budget-cutting could cripple recovery
Published on July 8th, 2011
Written by: Reuters

NEW YORK (Reuters) – Two years removed from its worst recession since World War Two, the U.S. economy is still struggling to create jobs, and things could get even tougher if all the talk of belt-tightening in Washington becomes reality.

Data on Friday showed hiring ground to a near halt last month, driving the jobless rate up to 9.2 percent and casting doubt on whether a sluggish U.S. recovery would soon pick up steam.

This all but ensures the Federal Reserve will keep interest rates at record lows well into 2012. But help probably won’t be as forthcoming from Congress and the White House, which are locked in battle over cutting a $1.4 trillion budget deficit.

The problem is one of timing: Economists and investors fear that with weak labor and housing markets causing consumers to tighten their own belts, the last thing the economy needs is an aggressive dose of austerity from the federal government.

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[Autumn]

1. It ain't rocket science that's for sure

so why can't these fucking politicians get it.:banghead:

[indepat]

3. Oh, they get it, but are the root cause and must find it preferable to real solutions

:patriot:

[Gman]

2. The GOP knows this very well

and they're trying to crater the economy again to beat Obama next year

[whosinpower]

4. they are winning. nt

But what will THEY have to work with then?

[Cali_Democrat]

5. Exactly....

But this begs the question, why is Obama coming out for cuts of any kind? He needs to fight HARD against cuts.

He's playing into their hands.