Austerity Does Not Work-Period!

The Republican mantra is that America must solve its debt right away and then focusing on jobs only results in business people losing confidence in the economy. Latest figures reveal the gross domestic product(GDP) rose at an annual rate of 2.5% during the first quarter of the year. Economists had been forecasting 3%. There is no doubt Republican sequester actions which reduced government spending are the cause of retracting the growth rate. Government cuts reduce government spending and also reduce the amount of money in circulation. As Dan Grenhaus of BTIG notes, “say what you will about government spending, but its reduction, as we’ve seen, is a drag on growth.”

England and the European Union are still pursuing austerity as the word of God. They also are witnessing large unemployment figures and reduction in growth of economies. Of course, if Paul Ryan and Mitt Romney are your apostles of economic growth by reducing expenditures in order to stimulate the economy, just plan on fewer jobs.