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Massachusetts Liberal

Observations on politics, the media and life in Massachusetts and beyond from the left side of the road.

Wednesday, August 03, 2011

Turkey surprise

It seems appropriate Congress set Thanksgiving as the deadline for agreeing on additional economic "adjustments." After all, the first stage is a turkey.

"Buoyed with confidence" would hardly seem to be the word from investors as they survey the process and the results of the Tea Party assault on our economic recovery. Lawmakers apparently ignored 800 years of economic history in opting to try and bring an already feeble recovery to a screeching halt.

Harvard economics professor Kenneth Rogoff, who studied 800 years of financial crises and is coauthor of the book “This Time is Different; Eight Centuries of Financial Folly,’" was blunt in his assessment to the Globe, noting typically takes about 4 1/2 years before per capita income returns to pre-recession levels.

Even worse:
“I don’t think the cutbacks are as big a problem as the process - and that was a disaster,’’ Rogoff said. “What really bothers me is that the whole process is a constitutional crisis that makes the US Congress look like the Italian parliament. And that’s not good for growth.’’
Wall Street certainly agrees.

So now it's up to 12 members of Congress to reach agreement on still deeper economy-damaging cuts. If they fail to come up with something, automatic cuts will kick in.

With Republicans talking about keeping anyone who supports a tax increase off the panel -- and Democrat countering with a oppose entitlement changes -- are we likely to see anything different come Thanksgiving but another giant turkey?

Maybe we should tell them to stuff it.

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Blogger Gregory Rose said...

People already are. This is the time when members of Congress hold town hall meeting across the country and we're getting predictions that it's going to be similar to when the healthcare debate was going on.

August 03, 2011 9:41 AM  

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