So here’s our contrarian take on the GOP today: They’re actually serious about some of the things they’re talking about, like cutting spending.
Yes, it’s easy to say that politicians never do jack squat, and that they’ve made this promise before, the energy of the Tea Party, and the clear resonance this has among voters means that the party will actually fight this time. We’ll see.
That being said, we think they have their priorities 100% backwards.
A GOP Congress-lady was on MSNBC last night, and when asked about spending cuts, she didn’t have much in the way of specifics, but that the party would start with the discretionary areas, before moving onto the biggies: defence, the entitlements, etc.
The problems here are two-fold… One is that trimming discretionary spending does nothing to actually address the real issue. So this approach is all about political expediency, rather than solving the problem.
And the other problem is that this approach is economy-weakening in the short term in the sense that demand slides, jobs are cut, etc.
Hopefully that GOP will go for the biggies: Social Security, healthcare, defence, etc. This is less politically expedient, but it would actually do something, and it would not sap short-term demand.
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