Saturday, March 23, 2013

Economic Idiocy

It appears that Republican economics should be rebranded as economic idiocy.  Their idea of how to solve today’s financial problems are really loony.  If an individual is suffering from dehydration, one does not offer a cure by withholding liquids or introducing diuretics.  When one is starving, the solution is not withholding nourishment.  The economy in the United States is either in dehydration, starvation, or a combination of both.  So, how do Republicans want to solve this problem...the want to reduce economic activity.  This may come as a shock to some Republicans, but a recession is the result of reduced (not increased) economic activity.  Furthermore, recovery from economic recession is dependent upon increasing economic activity.  Perhaps there is a Republican somewhere who can demonstrate how reducing spending on the part of either the government (public sector) or the private sector actually increases economic activity.  Perhaps that same Republican economic genius can also show how a reduction in employment that results from reduced government spending results in increased tax revenues.  At last look, when someone lost a government job or worked fewer hours at a government job, that someone received less income and, as a result, paid less tax on that lowered income.  Programs that result in less taxes fail the tests of either increasing revenues that go towards the costs of government or increasing economic activity that works to aid in economic recovery.  Just as less liquid is not a solution to dehydration or less nourishment a solution to starvation, cutting spending is no solution to economic recession.  Those who may claim that is how to speed economic recovery are economic idiots.