Posted Feb 19, 2013 by Martin Armstrong
President Barack Obama is warning that “people will lose their jobs” if across-the-board budget cuts take effect as scheduled next week. He argues that the $85 billion in cuts — known as the sequester — are “severe” and says they won’t help the economy and won’t create jobs.
Let me get this straight. If he raises taxes on the rich and payroll taxes plus his Obamacare, the real cost of living for the individual middle class jumped 10%. So reducing the spending of citizens in a consumer based economy will not lower economic growth and reduce jobs, but stop his spending and it will? If anyone can explain this logic please do. I think this is children’s logic. You give your credit card to your daughter to buy a dress for the prom. She spends $5,000. You freak out. Her response – she saved you $5,000 because she really wanted to buy a $10,000 dress. She saved you money. After all – that is how Washington reduced spending so it must be right!