Yes, Another Deep Recession Can Occur
The big news this week comes from the CBO. In leading news stories, the CBO states that another deep recession will occur if Congress fails to make a deal on the sequestration in the budget act passed early this year and multiple other expiring tax and spending bills.
For anyone paying attention, this news is not news. The only thing surprising is that it took this long for the CBO to announce this finding.
Of course, the nation’s economy would not be in this precarious position if Paul Ryan and the House Republicans had not blown up the three debt committees. According to reliable media sources, Paul Ryan played a leading role in ending negotiations because he refused to allow any revenue increases, even as tax revenues are at a nearly 60 year low.
In Eisenhower’s day, Republicans were well known as fiscal conservatives. They believed that tax revenues must meet spending, even when that meant higher taxes because they saw deficits as a real problem for the nation’s health.
During recessions, they spent and asked those who could afford to pay more to do so. There were no off-budget wars. No cutting taxes during a recession for the most wealthy. No demanding spending cuts that would hurt middle and working class families. No asking middle and working class families to sacrifice more than high-income families.
In other words, trickle down, supply side dogma did not exist in the GOP. They were rational economic actors who believed in restraining spending and also in taxing as needed to cover all the expenditures Congress approved.
Unfortunately, those days are gone. Those conservative Republicans have been driven out of the party. Now, the party is controlled by Ayn Randers who believe the nation will only succeed if the most wealthy are allowed to do and act as they wish, without any responsibility to the country or her people. Their attitude clearly marks a desire to return to the 1890s, before Teddy Roosevelt’s progressive Republican era that saved capitalism and began the rise of the middle class.
Regardless of GOP spin on the budget sequestration that attempts to blame President Obama and the Democrats, a potential recession need not occur. If Americans really want to put their fiscal house in order and stop a coming recession, these Ayn Rand Republicans, of which Paul Ryan is a leading proponent, must be voted out of office. Democrats, certainly, are far from perfect and are beholden to special interests as well, but they are better at this particular moment for the overall economy and the national budget. Their ideas are better to get the economy moving again, especially in light of the slowdown and recessions in Europe and the slowdown in the BRIC countries.
The U.S. can grow its way out of this slow recovery but only if Republicans, across the board, are defeated in November.