The arguments in favor of Austerity Forever are difficult to challenge, in the sense that clouds have difficulty rebutting the wisdom directed at them by shouty old men. Here for instance is Rick Moran, one of the Finest Minds of the Online Right, responding to this.
Does cutting the budget cause a slowdown in growth? As we all know, Washington isn’t “cutting” anything, but rather reducing the rate of growth in government programs. In the sense that the “normal” growth in spending for a government program is cut back slightly, it may affect certain procurement programs like weapons purchases. This would indeed be a loss of economic activity and thus put a damper on the economy.
Gosh. So cutting spending in a recession is bad?
Here though is the load of which you you should get.
Regardless of any justification for cutting spending by scholarly papers, the need to cut the budget and cut it now is a necessity. What Krugman and other “stimulus” advocates never mention is the politics of budget cutting, which is not concerned with the numbers of deficit reduction as much as it is with the art of the possible in negotiating a fix for our short and long term deficit problems.
Does anyone seriously believe if we get back to robust growth in the economy — 4% or more — that the political will to deal with our long term debt problems, our entitlement problems, and further deficit reduction will exist? It isn’t so much that the deficit and debt are “immediate” crisis in the sense that unless we balance the budget by next year, the economy will collapse. But once the economy improves, and revenue begins to recover, the need for deficit reduction disappears and Congress will go back to business as usual.
That’s the political reality. Without a spur to their behinds, Congress won’t deal with our debt and deficit problems. And that spur — uncontrolled deficits and a continual increase in our national debt — will disappear once the good times are rolling again.
See, we can't have robust economic growth spurred by increased government spending, because if we had that, it would solve the deficit problem, and that would completely destroy the political will to enact the government spending cuts we would need to enact to solve the deficit problem that would have been already solved by the robust economic growth spurred by increased government spending.
Rick Moran's gift for not understanding anything, and thus inadvertently clarifying the deep idiocy of his own side's propaganda, is glorious to behold. All hail the Ignoramus Savant.