Cutting Spending Means More, Not Fewer Jobs

J.D. Foster / February 18, 2011

The debate in the House of Representatives over spending cuts has left many observers utterly unraveled. Exhibit A: the President’s veto threat.

The core of the threat is that if he is presented a bill that cuts spending in ways or amounts he doesn’t like “while continuing to burden future generations with debt, the President will veto the bill.” On this basis, apparently the President would veto his own budget proposal. According to the President, his budget is full of painful spending cuts and heavily burdens future generations with rapidly mounting debt.

The President’s outside chorus has come equally unhinged. Take, for example, the claim by the Economic Policy Institute that cutting $100 billion from the President’s budget request for fiscal year 2011, as the Republicans originally pledged, would destroy 994,000 jobs. If this were true, then we would truly be as addicted economically to a rapidly growing budget as President Obama’s recent budget suggests. If this were true, we could never slow the growth in government. If this were true, then we would be doomed. (more…)