As austerity reaches our shores from across the pond, as teabaggRs' forcing of cuts begins to be felt here as it has been in Europe for years now, one can only wonder how those monomaniacal spending-reducers will react; other than to blame it on Obama, of course.
On a political note, it would be nice if this report persuaded some people that government spending really does affect economic growth. Unfortunately, the kind of people who refuse to believe this seem to have a weird, walled-off section in the brains that makes an exception for military expenditures. Higher spending on bombs and aircraft carriers is good for the economy, but higher spending on bridges and electrical grids merely saps business from the private sector. I don't know if the anti-Keynesians really believe this or are only pretending to believe it, but it works out the same either way. A report like this won't change their peculiar views one whit.How ironic (and idiotic) that Rs are fine with the stimulus package known as defense spending, while absolutely oblivious to the positive effects of domestic spending. It's undeniable; but then denial is what they're about.
We need to spend money at home, and we need the revenues to make it possible. It's not raising taxes that slows the economy: it's cutting spending which means cutting jobs which means people don't have money which means the corporations and their wealthy managers don't have demand for their widgets which means they lose money and the economy retreats. Why is that so hard is for them to understand? It's not as if it's not written in the winds. And every newspaper in Europe.