Skip to main content

View Diary: TARP- Institutionized Fraud, and Why No One Knows What Elizabeth Warren's Job Really Is. (26 comments)

Comment Preferences

  •  LOL...can I remind you of this big Al? (4+ / 0-)
    Recommended by:
    gmb, corvo, BigAlinWashSt, pawtucketpat

    A small army of economists warned Congress on Thursday not to focus on deficit reduction instead of job creation or else risk a 1937-style double-dip recession.

    "History suggests that a tenuous recovery is no time to practice austerity," says a statement signed by more than 300 economists and policy experts. "In the Great Depression, Franklin Roosevelt's New Deal generated growth and reduced the unemployment rate from 25 percent in 1932 to less than 10 percent in 1937. However, the deficit hawks of that era persuaded President Roosevelt to reverse course prematurely and move toward budget balance. The result was a severe recession that caused the economy to contract sharply and sent the unemployment rate soaring."

    Democrats in Congress have had 1937 in mind since March 2009. "We're not going to let it happen again," vowed House Speaker Nancy Pelosi (D-Calif.) at the time.

    Nevertheless, deficit hawks dominated the debate in Congress this summer as Democratic leaders struggled to reauthorize a series of programs created by the 2009 stimulus bill. Pelosi and her counterparts in the Senate have had seemingly little choice other than to sacrifice things like COBRA health insurance subsidies and enhanced unemployment benefits to win the support of deficit-hawkish Democrats and moderate

    What is different now, is what I am asking?

    Reactionary politics are just that.....why did we get here in the first place?

    That is what I am really asking here....

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site