“… IN the years following the global financial crisis, many European governments implemented sizable austerity measures. These included spending cuts and tax increases and were meant to confront concerns about rising levels of public debt or outright solvency issues. In fact, yields on debt issued by several European sovereigns started to take off by 2010, reflecting sizable default premiums (Krishnamurthy, Nagel, & Vissing-Jorgensen, 2018). Still, as austerity measures were implemented, default premiums kept rising. Also, along the cross-section of countries, large spending cuts were associated with strong increases of the default premium. Against this background, we ask whether austerity causes the default premium to decline, that is, whether austerity pays off._
_We find that the answer depends on the conditions under which austerity takes place. Our main result can be summarized as follows. If the default premium is high, to begin with, that is, if the economy is under severe fiscal stress, a reduction of government spending induces the default premium to increase further: austerity does not pay off. In contrast, if the default premium is initially moderate, cutting government spending induces the default premium to decline: austerity pays off during benign times. This result is robust across a variety of econometric specifications, modifications of our sample, and alternative ways to measure both fiscal stress and changes in government spending. …"
He could’ve. All he had to do was threaten two of his party’s members and get rid of the filibuster. If voters don’t like the policies enacted then the next election will be evidence of that. Would be nice if politicians ran on policies enacted and not promises they know they will break.
@MontanaB: It was Republicans who PASSED the Tax Bill in 2017 with sections crossed out and changes and amendments hand-written in the margins. https://www.usatoday.com/news/Republicans’ had input and adequate time to consider the ACA (originally, their own proposal – so they couldn’t support it) before the vote.
Concretionist almost 3 years ago
I’m hoping he’ll deliver something!
RAGs almost 3 years ago
The Q-publicans will block any positive thing they can, after all, we can’t let the Democrats have any achievements to show in the next election.
sevaar777 almost 3 years ago
Because many Americans apparently lack any brain infrastructure in the first place.
S&C = Dismayed&Depressed almost 3 years ago
The only infrastructure that the repugs want is the infrastructure for the sky city they believe will miraculously appear…
Patjade almost 3 years ago
Only if the republicans don’t bring it all down first.
superposition almost 3 years ago
The “Republican” austerity policy of “Keeping America squalid” matches their platformless “ideology” and their sense of morality.
superposition almost 3 years ago
An October 2020 prediction:
https://www.washingtonpost.com/outlook/2020/10/20/return-austerity-politics/
MIT analysis of austerity:
✂
“… IN the years following the global financial crisis, many European governments implemented sizable austerity measures. These included spending cuts and tax increases and were meant to confront concerns about rising levels of public debt or outright solvency issues. In fact, yields on debt issued by several European sovereigns started to take off by 2010, reflecting sizable default premiums (Krishnamurthy, Nagel, & Vissing-Jorgensen, 2018). Still, as austerity measures were implemented, default premiums kept rising. Also, along the cross-section of countries, large spending cuts were associated with strong increases of the default premium. Against this background, we ask whether austerity causes the default premium to decline, that is, whether austerity pays off._
_We find that the answer depends on the conditions under which austerity takes place. Our main result can be summarized as follows. If the default premium is high, to begin with, that is, if the economy is under severe fiscal stress, a reduction of government spending induces the default premium to increase further: austerity does not pay off. In contrast, if the default premium is initially moderate, cutting government spending induces the default premium to decline: austerity pays off during benign times. This result is robust across a variety of econometric specifications, modifications of our sample, and alternative ways to measure both fiscal stress and changes in government spending. …"
✂
https://direct.mit.edu/rest/article/102/2/323/96762/Does-Austerity-Pay-Off
Valiant1943 Premium Member almost 3 years ago
They rather we become a third world nation
codak almost 3 years ago
what should be delivered is rescinding the Trump tax breaks for the wealthy and his increased military spending. . .to help pay for covid relief
ferddo almost 3 years ago
Back in Eisenhower’s day, Republicans thought infrastructure had value… apparently today’s Republicans would label him a RINO…
ndblackirish97 almost 3 years ago
He could’ve. All he had to do was threaten two of his party’s members and get rid of the filibuster. If voters don’t like the policies enacted then the next election will be evidence of that. Would be nice if politicians ran on policies enacted and not promises they know they will break.
Robert C. Premium Member almost 3 years ago
@MontanaB: It was Republicans who PASSED the Tax Bill in 2017 with sections crossed out and changes and amendments hand-written in the margins. https://www.usatoday.com/news/Republicans’ had input and adequate time to consider the ACA (originally, their own proposal – so they couldn’t support it) before the vote.
B 8671 almost 3 years ago
In order to get this bill passed, they need to get rid of the filibuster first.
William Bednar Premium Member almost 3 years ago
If it makes Trump look bad, the Republicans will fight it, tooth and nail.