Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: STOCK MARKET WATCH -- Thursday, 14 February 2013 [View all]Demeter
(85,373 posts)4. ‘The deficit chart that should embarrass deficit hawks’ by Ezra Klein
http://www.washingtonpost.com/blogs/wonkblog/wp/2013/02/12/jed-graham-the-deficit-chart-that-should-embarrass-deficit-hawks/
Jed Graham calls this the deficit chart that should embarrass deficit hawks:
Heres a pretty important fact that virtually everyone in Washington seems oblivious to: The federal deficit has never fallen as fast as its falling now without a coincident recession, he writes for Investors Business Daily.
This is true whether or not the sequester goes into effect.
And we may well have a coincident recession this time, too. According to the initial GDP numbers, the economy shrank slightly in the fourth quarter of 2012, largely because government spending fell. As federal spending continues to fall and the effects are compounded by new tax increases (the payroll tax cut expired in January, for instance), it wouldnt be a huge surprise to see more quarters of negative growth. So, given that the typical definition of a recession is two consecutive quarters in which the economy shrinks, this drop in deficits might yet be accompanied by another recession....MORE
Jed Graham calls this the deficit chart that should embarrass deficit hawks:
Heres a pretty important fact that virtually everyone in Washington seems oblivious to: The federal deficit has never fallen as fast as its falling now without a coincident recession, he writes for Investors Business Daily.
This is true whether or not the sequester goes into effect.
And we may well have a coincident recession this time, too. According to the initial GDP numbers, the economy shrank slightly in the fourth quarter of 2012, largely because government spending fell. As federal spending continues to fall and the effects are compounded by new tax increases (the payroll tax cut expired in January, for instance), it wouldnt be a huge surprise to see more quarters of negative growth. So, given that the typical definition of a recession is two consecutive quarters in which the economy shrinks, this drop in deficits might yet be accompanied by another recession....MORE
Edit history
Please sign in to view edit histories.
47 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
Ms. Brown goes straight to the heart of the matter. The message needs to go viral.
Ghost Dog
Feb 2013
#20
EU exec Olli Rehn says euro states can have more time to cut deficits THAT'S BIG OF HIM
Demeter
Feb 2013
#15