I read this in a WaPo review of the GDP report.
“Liberals said the weak gross domestic product figures showed that massive government cutbacks were unwise, while conservatives said that lowering the budget deficit should be the priority.”
But is this really best described as a lib/cons split? Is it correct for readers to come away thinking that these are political positions with equal economic rationale?
I don’t think so. In fact, the evidence easily supports the contention that government spending cutbacks have been a large drag on growth in recent quarters and have led to sharp losses in state and local employment. And while you can surely find some economist to support the “lowering the budget deficit” priority, the vast majority will tell you that fiscal contraction now or in the near future would slow growth.
And they’re not be any means all liberals. CBO says so. Business investors/economists say so too.
Especially at a time like this, we need more careful assessments of such policy assertions.