Mitt now acknowledges that we can’t cut spending immediately without killing our fragile recovery. In an interview with Mark Halperin from Time, Mitt said:
“Well because, if you take a trillion dollars for instance, out of the first year of the federal budget, that would shrink GDP over 5%. That is by definition throwing us into recession or depression. So I’m not going to do that, of course. … I don’t want to have us go into a recession in order to balance the budget.” Sounding a little like Paul Krugman there, Mittens!
I had wondered how Mitt, given his business background, could not understand basic economics. The truth is that he does understand. Until now, he’s just been shy about admitting that knowledge because he’s been pandering to those who want huge cuts and want them immediately, not understanding the drastic economic contraction that would cause.
Look at what David Cameron’s austerity has done to Britain, sending her back into recession.