Thursday, February 10, 2011

Job Killing Spending Cuts

The Republicans have come up with a list of spending cuts that appear to sum to a mere $35 billion a year – sort of pennies on the dollar as far as balancing the budget without tax increases. In that list is a reduction in the IRS budget of $593 million, which will make tax evasion even easier. Kent Hoover, however, is more concerned with what is being cut – as we all should be:

Many of the budget cuts would come in programs that are dear to Obama’s heart, including spending on scientific research, loan programs to support alternative energy, and infrastructure investments. Let’s start with research. Republicans propose cutting $1.1 billion from the Department of Energy’s Office of Science, which is the nation’s largest supporter of basic research in the physical sciences. The plan calls for a $1 billion budget cut at the National Institutes of Health, the federal government’s medical research agency. The Centers for Disease Control would see its funding drop by $755 million. Agricultural research would be cut by $246 million.

Not exactly a recipe to promote future economic growth – is it? Public investment not only promotes long-term growth but is also an effective means for reducing the current aggregate demand gap. Of course, some might argue (incorrectly in my view) that a sizeable portion of the 9 percent unemployment problem comes from a mismatch of job opportunities and the current skills of those looking for work. But if this is the new conservative excuse for massive unemployment – then please explain why the Republicans want to reduce spending on jobs training by $2 billion?

1 comment:

Myrtle Blackwood said...

The Pentagon (as of February 2010) was reported to account for half of total world military spending. Add America’s NATO allies and Japan, and the figure reaches 75%. China and Russia combined spend only a paltry 10% of what the U.S. spends on defence. There are 750 US military bases in 50 nations and 255,000 service members stationed abroad, 116,000 in Europe, nearly 100,000 in Japan and South Korea. Military spending gobbles up 19% of federal spending and at least 44% of tax revenues. During the Bush administration, the Iraq and Afghanistan wars — funded by borrowing — cost each American family more than $25,000. Like Bush, Obama is paying for America’s wars through supplemental authorizations ­— putting them on the nation’s already maxed-out credit card. Future generations will be stuck with the bill.

Wars sending U.S. into ruin
Obama the peace president is fighting battles his country cannot afford

Last Updated: 5th February 2010, 1:25pm