In a sharp role reversal, Democratic leaders in Congress Wednesday called for both spending and tax cuts as a way to jump start the sagging economy but their conversion to spending less comes when a new report claims the nation faces more of a debt crisis unless taxes are raised.

The Congressional Budget Office report warns America faces a “European-style” debt crisis unless taxes are raised along with sharp spending cuts and adds more pressure on Congressional negotiators who are trying to work out a deal to raise the debt limit before the government runs out of money.

Which creates contradictory goals for budget negotiators: How do you mix stimulus and austerity in bad economic times.

Democrats — keeping a sharp eye on declining prospects for the 2012 elections — also want a jobs deal as part of any package.

“Let’s get the recovery right before you get in this deficit-cutting mode,” assistant Senate Democratic leader Dick Durban said. “Get people back to work.”

But Republicans want more spending cuts and claim immediate cuts would boost the economy and create jobs.  That, Federal Reserve Chairman Ben Bernanki says, is a recipe for disaster.

“I don’t think that sharp, immediate cuts in the deficit would create more jobs,” Bernanke said. “In the short run, fiscal tightening is at best neutral and probably more negative for job creation.”

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Doug Thompson published his first story and photo at age 11 -- a newspaper article about racism and the Klan in Prince Edward County, VA, in 1958. From that point on, he decided to become a newspaperman and did just that -- reporting news and taking photos full-time at his hometown paper, becoming the youngest full-time reporter at The Roanoke Times in Virginia in 1965 and spent most of the past 55+ years covering news around the country and the globe. After a short sabbatical as a political operative in Washington in the 1980s, he returned to the news profession in 1992. Today, he is a contract reporter/photojournalist for BHMedia and owns Capitol Hill Blue and other news websites.

8 COMMENTS

  1. An austere octopus with no arms stimulating itself with restraint.
    . Is that how our economy should work ,
    or some perverts key to success ?

    • Monetary masturbation… Seeds of economic procreativity spilled and spoiled without redemption… pecuniary prostitution politicized.

      Keynesian Cops, eh Keaton?

  2. How ludicrous! These elected crimpols in high places have spent the past 30 years facilitating the destruction of America and its infrastructure and are now feigning concern over its demise.

    They know exactly what they’ve done to this nation; I.E., sacrificed it on the altar of Mammon, driven by greed and avarice for evermore $$ and power.

    Wut a bunch of evil a*sclowns…!

    http://en.wikipedia.org/wiki/Mammon

    Carl Nemo **==

  3. These clowns couldn’t work their way out of a paper bag.

    Hyperinflation is next on the docket as the feds will have to keep printing more money to pay the bills.

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