Pulling all that money out of the economy during a downturn is not a desirable outcome, Toomey said, but ultimately not all that bad.
“It is very disruptive, I don’t think it’s going to have an adverse impact on the economy for the days or weeks or perhaps even months that this would continue,” he said. “I doubt it would be that long. I doubt that it would be disruptive to the economy per se. But it would be disruptive, certainly, to the people who are accustomed to and relying on the programs that would necessarily be cut.”
Global markets recoiled on Friday after U.S. lawmakers failed to break their debt-ceiling deadlock, raising concerns that the world’s largest economy could heading for a default, and both Canada and U.S. posted disappointing economic data.
In Toronto, the benchmark S&P/TSX composite index plunged 153.64, or 1.18 per cent, to 12,894.14.
In the U.S., the Dow Jones industrial average sank 141.52 points, or 1.16 per cent, to 12,098.59 while the Nasdaq composite index dropped 40.54 points, or 1.47 per cent, to 2,725.71.
Overseas markets were also lower on Friday. London’s FTSE 100 index was down 89.52 points, or 1.52 per cent, to 5,783 at midday. Frankfurt’s DAX had lost 107.71 points, or 1.50 per cent, to 7,082 and the Paris CAC was down 76.38 points, or 2.06 per cent, to 3,636/28.
In Asia, Tokyo’s Nikkei stock average finished down 68.32 points, or 0.69 per cent, to 9,833.03 and Hong Kong’s Hang Seng index fell 130.49 points, or 0.58 per cent, to 22,440.25.
So when you’re watching your retirement savings take a nosedive over the next few days, keep in mind that Senator Pat Toomey, of Pennsylvania, says it’s no big deal.
WASHINGTON — The 2007-2009 recession, already in the record books as the worst in the 66 years since the end of World War II, was even worse than previously thought.
From the start of the recession at the end of 2007 to the end in June of 2009, the U.S. economy shrank 5.1 percent. That is 1 percentage point worse than the previous estimate that the recession reduced total output during that period by 4.1 percent.
The new estimates emerged from the annual revision of economic data prepared by the Commerce Department’s Bureau of Economic Analysis and released Friday.
Among the previous 10 postwar recessions, output in only two dropped by more 3 percent. In the 1957-58 recession, the economy contracted 3.7 percent. And during the 1973-1975 downturn, the economy fell 3.2 percent from the start of the recession to the end.
The government attributed the bigger declines in output in part to weaker consumer spending and business investment than previously estimated.
Oh, you mean the kind of thing a REAL STIMULUS PACKAGE would have helped? Who the hell listens to a bunch of dirty hippies, anyway?
I rarely blog about myself. I prefer the veneer of fiction when it comes to personal matters, so when my bicycle was stolen Monday, I blogged about the thieves in business and government who prosper at the expense of the poor and near-poor.