Keynesian

CBO Bombshell - Our Congress Will Cause a Recession in 2013

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fiscal cliffThe CBO has issued a new report on what all of those automatic budget cuts are gonna do in 2013. They will cause a recession.

Growth in real (inflation-adjusted) GDP in calendar year 2013 will be just 0.5 percent, CBO expects—with the economy projected to contract at an annual rate of 1.3 percent in the first half of the year and expand at an annual rate of 2.3 percent in the second half. Given the pattern of past recessions as identified by the National Bureau of Economic Research, such a contraction in output in the first half of 2013 would probably be judged to be a recession.

What the CBO is referring to is the fiscal cliff. Remember when the budget crisis happened, resulting in the United States losing it's AAA credit rating? Then, Congress and this administration just punted, didn't compromise, or better yet, base recommendations on actual economic theory, and allowed automatic spending cuts of $1.2 trillion across the board, to take place instead. These budget cuts will be dramatic and happen in 2012 and 2013.

Buy American

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By now you would have to live in a cave to not experience the blow back in the simple act of buying U.S. steel. This is the Buy American provision in the American Recovery and Reinvestment Act of 2009.

This is not even the real issue. The question really should be why are not U.S. taxpayer funds to be used first and foremost to create jobs for U.S. workers?

Banks receiving massive U.S. taxpayer funds are firing U.S. workers while keeping temporary foreign guest workers. Why? Because they are an important conduit to offshore outsource and they are cheaper.