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What if the economy hasn’t recovered by time super-committee cuts kick in?



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Democrats and Republicans both are ignoring a serious risk in their ongoing zeal to see how can cut more of the budget faster than the other. Putting aside for a moment the wisdom of any of these cuts, in terms of the services they're paring back, but the really deep cuts have been put off until January of 2013, so as to give the weak economy a chance to recover before the cuts further depress growth and employment.  The problem is, no one thinks the economy is going to have recovered by January of 2013 when the big cuts kick in. In fact, both Krugman and Stiglitz (who have been right about most everything so far) have talked about the current economic malaise continuing for years. That means that once the cuts kick in, we could be in the same economic doldrums we're in now, and the cuts will make the economy every worse.

Again, no one thinks the economy is going to be much improved by January of 2013.  Yet Democrats and Republicans, including the President, are perfectly happy to start pushing the economy back into the red zone in just 15 short months.  That seems an awfully dumb idea.  And even dumber is the fact that no one is talking about it.


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