Archive for the ‘Budget/Economy’ Category
As a new writer to the Great Power Politics site, I look forward to commenting on an array of domestic and occasionally foreign, policy issues with you. I hope this will lead to a discussion (civil of course) where we can agree/disagree/educate each other on the various issues being discussed.
From the standpoint of an interested observer of current events and politics, we live in very interesting times. At times, this makes it difficult to decide what issue to focus on each day. So for the most part, I will write about issues related to economics, government spending, taxation, health care and the politics that surround such issues. I welcome your comments, criticisms, feedback and general thoughts.
To begin, I’d like to hear some of your thoughts on the budget battle going on in Washington right now? To fund the government, Congress must pass, and the President must sign, a Continuing Resolution (CR) by March 4 (this Friday). If not, we are looking at a repeat of the 1997 government shutdown that became a political winner for President Clinton and conversely, hurt the GOP-controlled Congress. The debate, similar to 1997, has focused on cutting government spending, with the Republicans demanding major cuts and the Democrats opposing such austerity measures.
Part of this debate is which programs will face cuts. But another part is what this will do to our economic recovery (to the extent we are experiencing an economic recovery). Ben Bernanke came out today in the negative, saying he doesn’t think the Republicans’ larger proposal to cut $61 billion from the remaining 2011 budget would have a significant impact on the economy’s growth. Of course, this is in contrast to the Goldman Sachs and Moody’s analysis that said the cuts would have a significant negative effect, potentially leading to 700,000 lost jobs.
For now, it looks like the government’s funding will be extended for another two weeks with Republicans getting $4 billion in cuts that they sought. Who was this temporary CR a win for – Democrats or Republicans? How do you think this shapes the debate for the next CR later in the month?