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View Diary: 25 Republicans can end the fiscal cliff stand-off (68 comments)

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  •  the short term spending cuts will (1+ / 0-)
    Recommended by:

    1) Hurt aggregate demand, and
    2) (Apparently the main concern of Rs) reduce revenue at defense contractors, presumably leading to cancelation of work and layoffs.
    3) Direct layoffs of government employees will both cause them to be unemployed, and then cause further unemployment as businesses that cater to them lose business.

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