Thread: Economy hurting
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Old 10-18-2013, 10:21 AM   #2
TonyR
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Join Date: Apr 2008
Location: Mid-Atlantic
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The combination of the payroll [tax] hike and the [unemployment] benefit cuts amounts to about $200 billion of fiscal contraction at an annual rate, or 1.25 percent of GDP, probably with a significant multiplier effect. Add this to the effects of sharp cuts in discretionary spending and the effects of economic uncertainty, however measured, and I don’t think it’s unreasonable to suggest that extortion tactics may have shaved as much as 4 percent off GDP and added 2 points to the unemployment rate.

In other words, we’d be looking at a vastly healthier economy if it weren’t for the GOP takeover of the House in 2010.
http://krugman.blogs.nytimes.com/201...what-a-drag-2/
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