(from nextnewdeal.net source Mike Konczal:)
“Rattner points out that less than 20 percent has come from tax increases, just like Alesina called for. James Pethokoukis also noted these numbers and their connection to Alesina’s work and referred to them as the “right” kind of austerity. But what does “right” mean here? There’s a technical definition on changes to debt-to-GDP from the paper, but there’s also the argument that the ‘right’ kind of austerity would be ‘be less recessionary or even have a positive impact on growth.’ … That hasn’t happened. In fact, the exact opposite is in play. Instead of expanding the economy, or even having little or no short-term effect, economists generally agree that this austerity (e.g. the sequestration) is cutting growth and reducing the number of jobs created. Suzy Khimm collects some numbers here, including Barclay’s estimate, “In 2013, the fiscal drag from government austerity is expected to be between 1.5 and 2.0 percentage points.” Where’s the expansion? Where’s the short-term confidence? This has been a complete failure.”
Oh, it is there, we now know that the high priests of the economic religion are at the service of the “new world order,” if the “positive impact for growth” is measured in favor of the bancomafia of wall street, the same bancorackets that “with immunity” created a 1,500 trillions derivative skim, as said measured in terms of corporate profits, the growth is there:
Everybody else, get ready for the FEMA extermination camps, allelujah.