Word comes that Barack Obama's budget will, not surprisingly, call for
ending the sequester spending limits now in effect. That's not
surprising. White House aides proposed the sequester, but Obama thought
it wouldn't go into effect because Republicans couldn't accept its sharp
limits on defense spending. But with voters recoiling against foreign
military involvement, they could and did.
At the time, Keynesian economists predicted that the sequester -- "austerity" -- would squelch economic growth. And they predicted that Republicans' failure to continue extending unemployment benefits beyond 26 weeks would result in mass misery.
The Keynesian predictions have proven unfounded. The 2009 stimulus, much of it devoted to preserving public employee union jobs, didn't seem to stimulate much. Growth after the tough early 2014 winter, though still not dazzling, has been stronger than in pre-sequester years. Unemployment fell sharply as an end of benefits prompted workers to find jobs and employers to hire them.
http://townhall.com/columnists/michaelbarone/2015/02/03/bad-policy-bad-politics-n1951654
At the time, Keynesian economists predicted that the sequester -- "austerity" -- would squelch economic growth. And they predicted that Republicans' failure to continue extending unemployment benefits beyond 26 weeks would result in mass misery.
The Keynesian predictions have proven unfounded. The 2009 stimulus, much of it devoted to preserving public employee union jobs, didn't seem to stimulate much. Growth after the tough early 2014 winter, though still not dazzling, has been stronger than in pre-sequester years. Unemployment fell sharply as an end of benefits prompted workers to find jobs and employers to hire them.
http://townhall.com/columnists/michaelbarone/2015/02/03/bad-policy-bad-politics-n1951654
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