CBO Report Warns Of "Significant Recession" . . .

Democrat Thelma and Louise Economics

. . . If Democrats Pursue "Thelma and Louise Economics" And Take Our Country Over Fiscal Cliff!

The Washington Post reports today, "The nation would be plunged into a significant recession during the first half of next year if Congress fails to avert nearly $500 billion in tax hikes and spending cuts set to hit in January, congressional budget analysts said Wednesday. The massive round of New Year’s belt-tightening — known as the fiscal cliff or Taxmageddon — would disrupt recent economic progress, push the unemployment rate back up to 9.1 percent by the end of 2013 and produce economic conditions 'that will probably be considered a recession,’ the nonpartisan Congressional Budget Office said."

The Hill adds, "In its most dire warning yet about the fiscal cliff, the CBO said the economy would contract by 0.5 percent in calendar year 2013 if the George W. Bush-era tax rates expireand automatic spending cuts are implemented. Unemployment also would rise from 8.2 percent in 2012 to 9.1 percent next year, the office estimates. . . .  CBO says the fiscal cliff will be worse than it had previously projected and that the ‘underlying strength’ of the economy is weaker.

And according to The New York Times, "In its semiannual report, the budget office said that the economy was somewhat weaker than it had projected in January. Fears about tax increases and spending cuts — the ‘fiscal tightening’ — are depressing economic growth, it said."

This CBO report only serves to underscore the danger of Senate Democrats’ suggestion that they would let the country plunge over the fiscal cliff just so they could enact tax increases. Last month, Bloomberg News reported that “Democrats say they are prepared to go over the so-called fiscal cliff at the end of the year” and The Washington Post pointed out, "Democrats are making increasingly explicit threats about their willingness to let nearly $600 billion worth of tax hikes and spending cuts take effect in January unless Republicans drop their opposition to higher taxes . . . .” In a major speech, Sen. Patty Murray (D-WA), part of Democrats’ Senate leadership said, “So if we can't get a good deal… then I will absolutely continue this debate into 2013… our country is going to have to face the consequences…"

But it’s now clearer than ever the danger facing the economy if Democrats follow through on their threats. As Politico puts it, "A trip over the fiscal cliff would likely send the U.S. economy into a recession in 2013, the Congressional Budget Office said on Wednesday . . . ."

A Senate staffer pointed out that these consequences of Democrat's all-consuming focus on tax increases were highlighted last month by Senator Mitch McConnell,  "At a moment when more Americans are signing up for disability than finding jobs, Democrats said they think it’s a good idea to drive the country off what economists are calling America’s fiscal cliff this coming January. You might call it Thelma and Louise economics – right off the cliff.  But whatever you want to call it, Democrats are evidently so determined to raise taxes on American job creators that if we don’t let them do it, they’d actually welcome an economic calamity that could rock not only the American economy, but the global economy too. Needless to say, that isn’t a program for jobs or economic growth. It’s an ideological crusade."

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