Originally Posted by
PaulStandsTall
The gradual cutting spending and raising taxes is probably the most gentle (read: logical) thing to do approaching this weak economy. Unfortunately, we have a Congress that is beyond worthless. They will be gridlocked until Europe's collapse worsens IMO. Then they will see we must change our ways. ( At least I still have some hope that they will )
If they continue as they are doing, the unemployment will basically stay around the same amount, but in a slightly upward motion. Money printing and propping up zombie banks goes a long way when you think about it. It's delaying the inevitable, but it is at least holding somewhat steady.
Cutting $1T is scary. It's what we need ultimately yes, but with our unemployment and economy, it's a HUGE risk. Reagan got lucky as the debt was nothing compared to now. We are now in even more uncharted territory. Honestly, who knows what would happen if the cuts came through Congress? It's fun to think it would work but there is no example because the numbers have never been this large. The magic number for unemployment before the government is overthrown might be 30%, we don't know! And Congress sure doesn't want to find out either. Hah!