Note to budget cutters: the U.S. economy slowed sharply in the first quarter. Economists cited these factors: high gas prices, which slowed consumer purchases for other things; bad weather, which slowed construction projects; and a 11.7 percent cut in defense spending, the most since the end of 2005.
When the government stops spending, unemployment rises and consumer spending falls. Government jobs lift the economy just as do private sector jobs.
It shouldn’t be necessary to make this observation. There appear to be some, however, who believe that government spending can be slashed by trillions of dollars overnight without tossing the economy into a tailspin. The consequence of last quarter’s reduction in military spending should put that mistaken notion to rest.
Moving back to a balanced budget should be done — but it must be done deliberately, carefully, to avoid sparking a new recession.
— Emerson Lynn, jr.
