Democrats_win
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Wed Jun-01-11 11:55 AM
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Latest GOP idea of linking debt to GDP. |
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All over TV: GOP robots saying that we must link the national debt and/or the budget deficit SPENDING to a percentage of the GDP. The reason this is a bad idea is that when the economy falters, and the GDP declines, the government can't "prime the pump" to get the economy going again. Worse, when the economy gets moving, the GDP grows and government spending will increase thus causing the economy to overheat.
The government's fiscal policy of spending during recessions and letting up during booms is called "counter-cyclic." The illogical policy proposed by the GOP makes me wonder if the GOP is just desperate for a political victory during the run up to the debt-ceiling vote.
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