This caught my eye because it’s really quite crazy. Last year, the International Monetary Fund pushed the UK quite aggressively for an austerity budget — and now they’re warning that the UK austerity budget has resulted in just 0.2 per cent growth in the second quarter of the year, following two quarters of poor growth. Gee, you don’t suppose unemployment, wage cuts and the additional costs incurred by public program cuts resulted in people having less money to spend, do you?
So what strategy do they recommend if growth doesn’t improve? Come on, you already know: tax cuts and more quantitative easing. You know, the same things that didn’t work here! It’s not really science with these people; it’s fundamentalist religious dogma, like the conviction that Adam and Eve co-existed with dinosaurs:
In a comprehensive analysis of the state of the British economy, the economic watchdog said that, between them, families would have £35 billion less disposable income due to the Government’s attempts to tackle the deficit. In addition, a fall in the value of houses would wipe off more than a tenth of their “tangible” wealth in real terms by 2016, the IMF said in its report.
The forecast for household finances came amid a growing political row about recent slow growth. George Osborne has come under pressure from David Cameron to come up with new ways to stimulate the economy.
The IMF reiterated its support for the Government’s programme of cuts, which it said had “significantly reduced the risk” of a sovereign debt crisis. However, it warned that tax reductions might be necessary if the rate of economic growth did not improve. And although it said the Government had made the right decisions to tackle the deficit, the impact on households would be significant. Continue Reading »
Congress members John Garamendi, Frederica Wilson, Hank Johnson, Mazie Hirono, Bobby Rush, Luis Gutierrez, Danny Davis, Stephen Lynch, William Lacy Clay, Chaka Fattah, Mark Critz, Shelia Jackson-Lee, Lloyd Doggett, and Eddie Bernice Johnson all spoke out against the debt ceiling deal – and then voted for it. Thought you might want to know!
With all eyes in Washington focused on the debt ceiling debate, little has been made of another costly impasse. Republicans have refused to re-authorize the Federal Aviation Administration without including an anti-union measure in the deal, leaving the FAA in the midst of a costly 10-day shutdown that has forced it to furlough more than 4,000 workers nationwide.
Now, with Congressional leaders seemingly close to ending their fight over the debt ceiling, House Minority Leader Eric Cantor (R-VA) announced today that the House will begin its August recess after it votes on the debt deal later today. That means the FAA shutdown, which began July 22, will likely last at least another month.
Democrats on the House Transportation Committee are outraged, as Reps. Nick Rahall (D-WV) and Jerry Costello (D-IL) called the recess “irresponsible” and said they planned to write a letter to Cantor calling on him to keep the House in session until the FAA was re-authorized.
Meanwhile, the FAA’s airport inspectors keep doing their jobs, even without pay:
The administrator for the Federal Aviation Administration says airport safety inspectors nationwide are working without pay and shouldering travel expenses themselves, as the agency’s budget crisis enters a second week. [...]
An inspector may travel to five airports in a two-week period, racking up thousands of dollars in hotel and airline tickets. Babbitt says they’re being asked to put those expenses on personal credit cards.
The government is losing more than $200 million a week in revenue generated through ticket taxes during the shutdown, and $2.5 billion in airport infrastructure improvement projects are on hold. The airlines, meanwhile, have used those tax breaks to line their own pockets rather than pass the savings on to customers.The Senate is reportedly staying in session to work on a re-authorization plan.
WASHINGTON — The long-term unemployed have been left out of a deal between congressional negotiators and the White House to enact massive spending cuts and raise the nation’s debt ceiling before its borrowing limit is reached on Tuesday.
Under the so-called grand bargain President Obama tried to strike with House Speaker John Boehner (R-Ohio), federal unemployment benefits would have been extended beyond January 2012, when they are set to expire.
But those negotiations collapsed in July. On Sunday, congressional leaders and the administration crafted a not-so-grand bargain that will cut spending without raising taxes or preserving stimulus programs like federal unemployment insurance.
Asked Sunday night why spending to help the unemployed had been left out of the deal, a White House official said, “because it had to be part of a bigger deal to be part of this.”
In other words, Democrats need significant leverage to get Republicans to agree to additional spending on the unemployed. Federal unemployment insurance programs, which kick in for laid off workers who use up 26 weeks of state benefits, cost a lot of money: Keeping the programs through this year required an estimated $56 billion. In December, Democrats only managed to keep the programs alive for another 13 months by attaching them to a two-year reauthorization of tax cuts.