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Romney: Spending cuts slow economic growth
MSNBC ^ | 2/21/2012 | Michael O'Brien

Posted on 02/22/2012 8:49:20 AM PST by Qbert

Mitt Romney said Tuesday that cutting spending slows growth in the economy -- a rhetorical slip more akin to an argument a Democrat might make than a Republican.

Speaking in Shelby Township, MI, the former Massachusetts governor took a question about the Simpson-Bowles fiscal commission empaneled by President Obama to address the nation's deficit and debt issues. In his response, he said that addressing taxes and spending issues are essential.

"If you just cut, if all you're thinking about doing is cutting spending, as you cut spending you'll slow down the economy," he said in part of his response. "So you have to, at the same time, create pro-growth tax policies."

That sort of comment was sure to raise the eyebrows of fiscal conservatives in the GOP, who have long preached a message of fiscal restraint as a path to economic growth.

"It's hogwash. It confirms yet again that Romney is not a limited government conservative," said Andy Roth, the vice president for government affairs at the fiscally conservative Club for Growth. "The idea that balancing the budget would not help the economy is crazy. If we balanced the budget tomorrow on spending cuts alone, it would be fantastic for the economy."

[Snip]

***UPDATE*** Romney spokesman Ryan Williams commented on the comments: The governor’s point was that simply slashing the budget, with no affirmative pro-growth policies, is insufficient to get the economy turned around.  However, he believes that budget cuts – especially in the context of President Obama’s unprecedented spending explosion – are a step in the right direction.  As he made clear in his economic plan, he believes that spending cuts that reduce the size of government and balance the budget are crucial to economic growth and job creation.

(Excerpt) Read more at firstread.msnbc.msn.com ...


TOPICS: News/Current Events; Politics/Elections; US: Arizona; US: Michigan
KEYWORDS: biggovernment; mythromney; norinos; romney; spending
Isn't this the same guy who ran all of those ads accusing everybody else of being pro-big government?...
1 posted on 02/22/2012 8:49:28 AM PST by Qbert
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To: Qbert

2 posted on 02/22/2012 8:51:38 AM PST by jimbo123
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To: Qbert
Romney: Spending cuts slow economic growth

[facepalm] And Romney makes the GOP presidential roster "slower" by bringing down the average IQ. D'oh!

3 posted on 02/22/2012 8:52:18 AM PST by Still Thinking (Freedom is NOT a loophole!)
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To: Qbert

Hey give him a break, he wants to roll back government spending to January. LOL


4 posted on 02/22/2012 8:53:21 AM PST by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: Qbert

“If you just cut, if all you’re thinking about doing is cutting spending, as you cut spending you’ll slow down the economy,” he said in part of his response. “So you have to, at the same time, create pro-growth tax policies.”

I’m not defending Mittens, but the headline is a total distortion. We shouldn’t feed the animals, either.


5 posted on 02/22/2012 8:54:05 AM PST by jessduntno ("Newt Gingrich was part of the Reagan Revolution's Murderers' Row." - Jeffrey Lord, Reagan Admin.)
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To: Qbert

Thanks for the Keynesian response Mitt.


6 posted on 02/22/2012 8:54:59 AM PST by Darren McCarty (Stop Romney - Rick Santorum in the Michigan primary)
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To: Qbert

This guy will be in a bunker from day one of his administration. The MSM will cream him.


7 posted on 02/22/2012 8:55:19 AM PST by headstamp 2 (Liberalism: Carrying adolescent values and behavior into adult life.)
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To: Qbert

Romney: Spending cuts slow economic growth

This has to be the Drudge headline, with the red lights going off around it.


8 posted on 02/22/2012 8:56:22 AM PST by Sybeck1 (It's official, Mitt can't win in either Dixie or the Midwest.)
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To: Qbert

If Mitt Romney took over a company, would he say that reducing the amount of money going out would not make the company more prosperous??

The same principle applies and Romney’s either a dope or is intentionally spouting the establishment line (or like his father before him, is easily brainwashed).

He needs to be removed from the republican field and must not become the nominee.


9 posted on 02/22/2012 8:57:11 AM PST by cotton1706
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To: jessduntno
“So you have to, at the same time, create pro-growth tax policies.”

SO I guess what really counts here is Romney's definition of "pro-growth tax policies".

Given his progressive Liberal record as Governor and his continual habit of lying and shading the truth, I'll bet his definition is not the same as ours.
10 posted on 02/22/2012 8:59:09 AM PST by SoConPubbie
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To: Qbert

Why yes, yes he did.

And we still have idiots on FR pushing this guy as a ‘conservaive’.


11 posted on 02/22/2012 8:59:18 AM PST by Darksheare (You will never defeat Bok Choy!)
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To: jessduntno

"I’m not defending Mittens, but the headline is a total distortion. We shouldn’t feed the animals, either."

We definitely need pro-growth policies- but he did say that spending cuts alone will slow economic growth. It reveals (yet again) what he's really thinking when he opens his mouth on such matters.

12 posted on 02/22/2012 9:02:27 AM PST by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
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To: jessduntno

“Romney spokesman Ryan Williams commented on the comments:......a step in the right direction......”

HUH? Let me translate that phrase for you.

“I really don’t believe this, but I know it’s political suicide to actually admit that Mitt believes what he said. So I’m spinning it this way.”


13 posted on 02/22/2012 9:03:07 AM PST by faucetman ( Just the facts, ma'am, Just the facts)
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To: SoConPubbie

SO I guess what really counts here is Romney’s definition of “pro-growth tax policies”.

Yes. If you don’t reduce tax penalties, tarriffs and lower rates, cutting spending will not sufficiently drive the economy in the direction we want...which is up, not sideways. The Japanese made that mistake, didn’t they?


14 posted on 02/22/2012 9:05:05 AM PST by jessduntno ("Newt Gingrich was part of the Reagan Revolution's Murderers' Row." - Jeffrey Lord, Reagan Admin.)
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To: Qbert

What a dolt.

Bottom line...if government spending spurred economic growth, we’d be high flying in a massive boom right now. We are spending at unprecedented levels.

I would bet if we cut 33% of the government, the economy would literally boom overnight.


15 posted on 02/22/2012 9:05:05 AM PST by ilgipper (Everything you get from the government was taken from someone else)
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To: Qbert

#632 another reason not to vote for Romney.
If I hear one more person say he is a conservative, I may just bitc# slap’m.


16 posted on 02/22/2012 9:07:07 AM PST by svcw (Only difference between Romney & BH is one thinks he will be god & other one thinks he already is.)
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To: Qbert

Who is this guy who is arguing for cuts only and no pro-growth changes?


17 posted on 02/22/2012 9:07:07 AM PST by DManA
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To: jessduntno
Yes. If you don’t reduce tax penalties, tarriffs and lower rates, cutting spending will not sufficiently drive the economy in the direction we want...which is up, not sideways. The Japanese made that mistake, didn’t they?

What was noticebly lacking in his comments was slashing the size of goverment including regulations.

Romney would just be more of the same.

We need a bold leader, both terms do not apply to "Status-Quo" Mitt.
18 posted on 02/22/2012 9:18:00 AM PST by SoConPubbie
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To: Qbert

“The governor’s point was that simply slashing the budget, with no affirmative pro-growth policies”

Why is it that most corrections tend merely to repeat what was said, if not make it worse. That there is what people had a problem with: the idea that slashing the budget by itself is not pro-growth. PR types are vastly overpaid.


19 posted on 02/22/2012 9:20:35 AM PST by Tublecane
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To: jessduntno

"Yes. If you don’t reduce tax penalties, tarriffs and lower rates, cutting spending will not sufficiently drive the economy in the direction we want...which is up, not sideways. The Japanese made that mistake, didn’t they?"

- What on earth are you talking about?...

"Japan slowly wakes up to doomsday debt risk"

"...The government borrows more than it raises in taxes, and its debt pile amounts to two years' worth of Japan's economic output, the highest debt-to-GDP ratio in the world.

It costs Japan half of the country's tax income just to service its debt. Each year, Japan's debt level increases by more than the combined gross domestic product of Greece and Portugal."

http://in.reuters.com/article/2012/02/20/us-japan-debt-idINTRE81G0IZ20120220

20 posted on 02/22/2012 9:23:10 AM PST by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
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To: Qbert

Romney = Obama lite


21 posted on 02/22/2012 9:23:34 AM PST by beethovenfan (If Islam is the solution, the "problem" must be freedom.)
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To: beethovenfan

Dear God! How did this fool become so rich?


22 posted on 02/22/2012 9:28:38 AM PST by GlockThe Vote (The Obama Adminstration: 2nd wave of attacks on America after 9/11)
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To: Qbert

- What on earth are you talking about?...

I’m talking about how they got there...


23 posted on 02/22/2012 9:33:03 AM PST by jessduntno ("Newt Gingrich was part of the Reagan Revolution's Murderers' Row." - Jeffrey Lord, Reagan Admin.)
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To: jessduntno
I’m not defending Mittens, but the headline is a total distortion.

Agreed. MSNBC has purposely erased half his statement to get conservatives mad.

Judging by this thread, looks like the ploy (which is used all the time) worked once again.

24 posted on 02/22/2012 9:33:02 AM PST by what's up
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To: Qbert
"We are determined to rebuild America, not manage its decay."--
Newt Gingrich
25 posted on 02/22/2012 9:33:42 AM PST by beaversmom
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To: Qbert

- What on earth are you talking about?...

Japan’s economic problems, like ours, originated in huge asset “bubbles.” From 1985 to 1989, Japan’s stock market tripled. Land prices in major cities tripled by 1991. The crash was brutal. By year-end 1992, stocks had dropped 57 percent from 1989. Land prices fell in 1992 and proceeded steadily downward; they are now at early 1980s’ levels. Wealth shrank. Banks — having lent on the collateral of inflated land values — weakened. Some became insolvent. The economy sputtered. It grew about 1.5 percent annually in the 1990s, down from 4.4 percent in the 1980s.

Despite massive stimulus, rapid growth hasn’t resumed two decades later. Although the Japanese reacted slowly, they adopted the advice of economics textbooks. They raised spending, cut taxes and let budget deficits balloon. Gross government debt soared from 63 percent of the economy (gross domestic product) in 1991 to 101 percent of GDP by 1997. It’s now around 200 percent. The Bank of Japan (their Federal Reserve) cut interest rates, going to zero in 1999 — a policy that, with some slight interruptions, endures.


26 posted on 02/22/2012 9:35:26 AM PST by jessduntno ("Newt Gingrich was part of the Reagan Revolution's Murderers' Row." - Jeffrey Lord, Reagan Admin.)
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To: jessduntno

“I’m not defending Mittens, but the headline is a total distortion”

Not total, though misleading. Romney seems to be saying that thew government will still be taking money out of the economy via taxes while its cutting spenidng. Which is not to say that he’s ignorant of the relation between taxes and spending. That less spending removes the rationale for high taxation and puts downward pressure on rates. Only that he’s speaking to the lag between cuts and eventual growth. Because so long as the government continues to collect taxes which will not be pumped back into the economy through spending, however inefficiently, theoretically some capital will sit idly.

Romney underestimates the importance of spending beyond the tax yield, which comprises—what?—something verging on 10% of GDP. Cutting that would not leave idle tax revenue sitting around, and hence couldn’t negatively affect growth. He also seems all too willing to believe activity spurred by government spending constitutes something economically meaningful. But the MSM lives and dies by numbers, and whether the feds are digging up and filling in holes or inventing the internet, we pretend their spending is meaningful.

If hole digging numbers go down, people will say the economy’s slowing. They will blame the absence of the “multiplier effect” and “pump priming” of government spending. On that count, Romney’s point is taken. Though I can’t help but feel he’s wildly missing the mark. In what universe is it easier to slash spending than cut taxes? Why wouldn’t tax cuts follow spending cuts, once we’ve gotten over the spending cut hump? We’ve already had plenty of historic tax cuts. Spending cuts are the holy grail.

Hence, this is a phony problem.


27 posted on 02/22/2012 9:39:13 AM PST by Tublecane
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To: Tublecane

You’ll appreciate this...

http://www.realclearpolitics.com/articles/2010/11/15/learning_from_japans_mistakes_107948.html


28 posted on 02/22/2012 9:41:28 AM PST by jessduntno ("Newt Gingrich was part of the Reagan Revolution's Murderers' Row." - Jeffrey Lord, Reagan Admin.)
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To: jessduntno

Yeah, the Japanese increased spending. Romney is saying that we shouldn’t cut spending, alone.


29 posted on 02/22/2012 9:45:36 AM PST by Qbert ("The best defense against usurpatory government is an assertive citizenry" - William F. Buckley, Jr.)
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To: jessduntno
"“If you just cut, if all you’re thinking about doing is cutting spending, as you cut spending you’ll slow down the economy,"

How is it a distortion? Yes, he also said something else, but he still said this. Either just cutting spending will slow the economy or it won't. He seems to have clearly said it will.

30 posted on 02/22/2012 9:46:51 AM PST by mlo
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To: Qbert

Mitt is now channeling Paul Krugman.
You can’t make this stuff up.


31 posted on 02/22/2012 10:04:25 AM PST by Buckeye McFrog
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To: Qbert
This Mitt Romney clown should have kids with Valerie Jarrett, who claims that unemployment stimulates the economy.
32 posted on 02/22/2012 10:08:36 AM PST by Lazamataz (If unemployment helps the economy, like the W.H. says, then CONTRACTING CANCER MAKES YOU HEALTHIER!)
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To: mlo

“How is it a distortion? Yes, he also said something else, but he still said this.”

Please.


33 posted on 02/22/2012 10:27:04 AM PST by jessduntno ("Newt Gingrich was part of the Reagan Revolution's Murderers' Row." - Jeffrey Lord, Reagan Admin.)
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To: jessduntno

“Please” is not an answer.


34 posted on 02/22/2012 10:55:34 AM PST by mlo
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To: mlo

“Please” is not an answer.

Yeah it is, you just obviously don’t know gentle insults when you read them.


35 posted on 02/22/2012 11:09:36 AM PST by jessduntno ("Newt Gingrich was part of the Reagan Revolution's Murderers' Row." - Jeffrey Lord, Reagan Admin.)
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To: mlo

Mon Feb 20 2012 19:35:11 GMT-0800 (Pacific Standard Time) · 357 of 496
mlo to bossmechanic
“Since 2008 I have never seen a point-by-point factual repudiation of the core “birther” arguements.”
Oh please. It’s been so beat to death here on FR that most of the people trying to correct birther silliness have grown tired of it.


36 posted on 02/22/2012 11:12:27 AM PST by jessduntno ("Newt Gingrich was part of the Reagan Revolution's Murderers' Row." - Jeffrey Lord, Reagan Admin.)
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To: cotton1706
The same principle applies and Romney’s either a dope or is intentionally spouting the establishment line (or like his father before him, is easily brainwashed).

If you wanted to brainwash Mittens, you would have to give him an enema.

37 posted on 02/22/2012 11:30:08 AM PST by dearolddad
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To: dearolddad

If you wanted to brainwash Mittens, you would have to give him an enema.

Or, as Gene McCarthy said of his father, a light rinse would be sufficient.


38 posted on 02/22/2012 11:43:48 AM PST by cotton1706
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To: Qbert

Ruh Roh. Dole McRomney has stepped in it again. More Keynesian pap. You do get problems if you hit te brakes too fast, but you don’t need stimulus to fix it.


39 posted on 02/22/2012 12:20:53 PM PST by FastCoyote (I am intolerant of the intolerable.)
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To: Qbert
Mitt Romney said Tuesday that cutting spending slows growth in the economy -- a rhetorical slip more akin to an argument a Democrat might make than a Republican.

Mitt, you and your pacs have spent money like drunken sailors to buy you the office of the presidency. How is that working out for you??? Those coveted independents are not nearly as stupid as you make them out to be.

40 posted on 02/22/2012 12:29:43 PM PST by Just mythoughts (Luke 17:32 Remember Lot's wife.)
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To: beaversmom

“We are determined to rebuild America, not manage its decay.”—
Newt Gingrich

That seems to be it in a nutshell and almost all I need to know about what Gingrich is thinking.


41 posted on 02/23/2012 4:18:32 AM PST by equaviator
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