John on July 31, 2011 at 4:24 pm
According to Huff Post, Durbin said this on the floor of the Senate today:
The Republicans are killing Keynesian economics with their attempt to cut spending as the economy rebounds from a recession, Senate Majority Whip Dick Durbin (D-Ill.) said in a floor speech on Sunday.
“I would say … that symbolically, that agreement is moving us to the point where we are having the final interment of John Maynard Keynes,” he said, referring to the British economist. “He normally died in 1946 but it appears we are going to put him to his final rest with this agreement.”
“So here we are in the horns of a dilemma,” Durbin said. “In order to avoid the disaster that would occur August 2 if the United States defaulted for the first time in its history, we are being told we have to cut back on government spending and by cutting back on spending, we may also have a negative impact on our economy.”
First quarter growth was just revised down to 0.4%. Good luck trying to blame that on a bunch of mild spending cuts that wouldn’t even be passed for another three months. Three trillion in cuts over 10 years means we’re still going to be adding $6-7 trillion to the debt over the next decade. If there is a problem, it’s not that we’re tightening our belt too much.