A quick piece from Rachel Maddow the other night on how the budget deficit seems to have shrunk itself. We’re seeing this year the fastest deficit reduction we’ve had since WWII, according to Maddow.
She also notes in her segment the recent NYT story that shows we’d have 1.5m more jobs, and that unemployment would be be down a full point further, had we not gone after the deficit so aggressively during a week economy.
The Fed also recently warned that austerity was harming the economy.
And now we have even more data on how it’s harmed the US and wasn’t even necessary for taking a significant chunk out of the deficit. Of course, Republicans knew this. Ever since Newt Gingrich admitted that he wanted Medicare to whither on the vine, we knew that Republicans’ plan all along was to build up big deficits, Reagan-style, and then use those deficits to justify massive cuts in programs other than those that caused the deficits (i.e., defense increases and tax cuts).