TeeJaw Blog

Christiane Amanpour Thinks a $61 Billion Cut Out of a $3.83 Trillion Budget Will “Stick a Fork in the Recovery”

Posted in Economic Theory, Government and Politics by TeeJaw on Monday, March 7, 2011, 10: 19 AM

That’s what she said on ABC’s This Week yesterday. She also buys the Mark Zandi theory that says a $61 Billion cut will result in 700,000 jobs being lost. None of that is even close to true, of course. It also indicates that both Amanpour and Zandi are not just biased in their reporting. They are just plain dumb. They say what they say in the face of $800 Billion of stimulus spending which was a complete failure. It didn’t create many permanent jobs, in fact if anything stuck a fork in the recovery it was that.

A $61 Billion cut out of a $3.86 Trillion budget amounts to a 1.6% cut in proposed spending. If you were expecting net take-home pay in your paycheck of $3,830 and found out it was going to be $61 less, how bad would that be? Would that stick a fork in your lifestyle?

Also, see The One Chart You Need to See shows that spending this year will exceed revenue by $1.3 Trillion. $61 Billion is 4.6% of that. So what is being asked is to reduce the deficit this year from $1.3 Trillion to $1.239 Trillion. And Amanpour has the gall to suggest this will “Stick a fork in the recovery.” The woman is mad insane with her partisanship.

This short video puts it in further perspective:

Like other facts that liberals either cannot grasp or choose to ignore, every dollar the government spends has to come from the private sector. That means the private sector will not have that dollar to spend on private goods and services which in turn creates jobs to supply those goods and services. If the federal budget is cut by $61 Billion it simply means the private sector will be able to spend that $61 Billion on private goods and services thus creating private sector jobs.

Stick a fork in the recovery? How does anyone sit on the couch on a Sunday morning and listen to idiots such as Christiane Amanpour? Well, fewer and fewer are.

Amanpour and Zandi need to watch this economics 101 video that I posted one month ago so they can understand how reduced government spending is what allows jobs to be created:

Four Reasons Big Government is Bad Government

UPDATE:  The federal government posted its largest monthly deficit in history in February at $223 billion, according to preliminary numbers the Congressional Budget Office released Monday morning.  The Bush deficit for all of 2007 was $161 Billion.  But Christiane Amanpour (and the Democrats as well) think we can’t cut  a measly $61 Billion out of an annual budget of $3.8 Trillion.  Where does the money come from to cover these deficits?  Two sources:  borrowing, which your children will have to repay, or by inflation which is the cruelest tax of all as it makes whatever money you have worth less.


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