This is for all of the conservative, TEA Party, Republicans living in their bubble of conservative reality.
- First of all, a recession is the result of a decline in economic activity. Putting this in a way that might penetrate that bubble, when spending drops, economic activity declines and a significant decline will result in a recession.
- Second, during periods of recession, fewer people have jobs. Usually, people without jobs do not have income and therefore do not pay income taxes. When people stop paying income taxes, the government tends to spend more than it takes in in taxes. When this happens, the result is a deficit.
- Third, even when there is a recession, there are a few people who neither lose their jobs nor are actually economically hurt. That small percentage of people actually will find their income and their wealth actually increases and the amount of taxes they pay increases proportionally. Unfortunately, there are not enough of these people (only about 10% of the working population) paying enough increases in taxes to offset the loss of those no longer working because of the recession or those whose income has been reduced because of the recession (about 90% of the working population)
- Fourth, trying to “fix the deficit” by cutting government spending will only make the recession worse. Since most recessions are the result of a droop in private sector spending (see item 1) the only other source of economic activity is from the public sector, better known as the government. If the government spending is cut along with the reduction in private sector spending, unless there is something from another planet that comes to earth to create economic activity, there is no one left to spend. Also keep in mind that most of what government spends is spent on wages and salaries. The government either hires people directly or contracts for products and services from outside the government that results in people being hired. All of these people, whether working directly for the government or working for government contractors pay taxes on their income, sales tax when they purchase anything, property taxes on their homes (or in their rent if they do not own)
- Fifth (and finally), TEA Party conservatives need to burst the bubble they live in and if they want to “fix the deficit” need to figure out some way to inject more revenue into the economic system. Removing revenue otherwise known as cutting spending will only result in bigger deficits, more people out of work, fewer people paying taxes, and more demand for government funded “safety net” resources.
It is not rocket science but a look back at history on the part of those living in their bubble would be advised. Oh, one more thing, perhaps the bubble heads should ask why it is that the biggest advocates for cuts in entitlement spending and lower taxes are the biggest beneficiaries of government largess in one form or another. Sounds a lot like “ more for me, but less for you” thinking on their part.
