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As the deadline for the debt ceiling draws near, the insane and pointless debate continues. Dragging out the inevitable raising of the debt ceiling is extremely dangerous. Never before has the U.S. economy come so close to reaching the debt ceiling. Never before have politicians played this game of chicken with the debt in order to get their way. The latest GOP plan asks for huge and immediate spending cuts in all discretionary spending in exchange for only a six-month debt ceiling increase. That is insane by anyone’s measures.
Furthermore, spending cuts during a recession is asinine. Every other economic slump that America has been in has been solved by government spending. The government operates differently than a household budget so let’s stop making that comparison. Yes, if I am in debt I will reduce my spending. But, I am not responsible for 300 million citizens. I reduce my spending and it only affects me, my husband and pets. If American utilizes these big spending cuts that BOTH parties are now entertaining, it will increase unemployment further draining states’ economies. When states cut services, as many already have, like unemployment and food stamps, people are homeless, hungry and aren’t spending money. The economic recession that we have been struggling to get out of for years quickly becomes a depression with spending cuts. When average families do not have money to spend, businesses will lay off people. Factories will close. The tax revenue that the United States gets will decrease even further as less and less people are working. Houses will not sell. The economy will come to a complete stand still. Don’t believe me? Nobel Prize winner economist Robert Reich states the same thing.
Not raising the debt ceiling is stupid. I cannot figure out why, in this fragile economy, the Republicans want to mess with this. The GOP was elected last November with their vague promises of creating “jobs, jobs jobs.” Nothing will cause jobs to disappear faster than this plan of raising the debt ceiling for six months while cutting spending and hurting average Americans. If the debt reduction is so important, there is no plausible explanation on why taxes aren’t being raised. I don’t want to pay more taxes, but if the GOP wants to reduce the deficit, you really have to increase taxes. It is just common sense. The Republicans state that raising taxes on the wealthy will somehow make the economy tank. But, that is the ass backwards trickle down crap that has never, ever worked. The rich people spend the same amount of money whether their tax rate is 35 percent or 50 percent. The average family though will not spend money if they are unemployed. But, they certainly will spend if they have money which will increase the economy leading business owners to hire. Business owners do not add employees just because they have extra money. THAT IS THE STUPIDEST THING I HAVE EVER HEARD. Employees are only hired if there is a DEMAND. No demand if people don’t have money. This is so simple it makes me want to scream.
Hopefully, the voters will figure out simple economics and encourage their representatives to take a crash course before the U.S. falls off the cliff. Once we default on our loans, there is no turning back. The end results will be disastrous for everyone involved. We are in a barrel and Niagara Falls is coming up quickly.