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View Diary: New wingnut meme brewing: Obama is faking the debt limit deadline (57 comments)

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  •  Can you explain that? (2+ / 0-)
    Recommended by:
    whenwego, Simplify

    I was thinking the other way around -- that we aren't paying most Government employee salaries until this is resolved.  What are the increased expenditures?

    "Get over it...and get out of the way." -- Gov. Steve Beshear (D-KY)

    by mspicata on Tue Oct 01, 2013 at 12:59:35 PM PDT

    [ Parent ]

    •  ..... (5+ / 0-)
      Recommended by:
      mspicata, ColoTim, cosette, whenwego, Creosote

      http://www.bloomberg.com/...

      A partial shutdown of the federal government will cost the U.S. at least $300 million a day in lost economic output at the start, according to IHS Inc.

      While that is a small fraction of the country’s $15.7 trillion economy, the daily impact of a shutdown is likely to accelerate if it continues as it depresses confidence and spending by businesses and consumers.

      Lexington, Massachusetts-based IHS, a global market research firm, estimates that its forecast for 2.2 percent annualized growth in the fourth quarter will be reduced 0.2 percentage point in a weeklong shutdown. A 21-day closing like the one in 1995-96 could cut growth by 0.9 to 1.4 percentage point, according to Guy LeBas, chief fixed income strategist at Janney Montgomery Scott LLC in Philadelphia.

      “Government spending touches every aspect of the economy, and disruption of spending, more than the direct loss of income, threatens to damage investor and business confidence in ways that can seriously harm economic growth,” LeBas said yesterday in an interview.

      https://www.google.com/...

      I want 1 less Tiny Coffin, Why Don't You? Support The President's Gun Violence Plan.

      by JML9999 on Tue Oct 01, 2013 at 01:09:27 PM PDT

      [ Parent ]

      •  That is not relevant (1+ / 0-)
        Recommended by:
        Simplify

        A reduction in economic output of the United States is not the same as a reduction in US government spending.

        The shutdown absolutely reduces US government spending--and the point of the article you cite is that the reduction in spending causes a reduction in output.

        "Well, I'm sure I'd feel much worse if I weren't under such heavy sedation..."--David St. Hubbins

        by Old Left Good Left on Tue Oct 01, 2013 at 05:32:43 PM PDT

        [ Parent ]

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