Historian299
Banned
What if congress passed a bill saying it wasnt legal to have a balance budget requirment for state/local? Or does the propganda write itself?I remember on Election Night 2008 after Obama was declared the winner, there were many mainstream pundits on television saying that the first priority for Obama was to reduced the deficit first.
When the stimulus was first proposed there was a conscience decision to keep it under a trillion dollars which turned out to be enough to keep the economy going but not enough to expand fast enough to overcome the worst effects of the recession until a couple of years later when the economy picked up on its own.
While other countries went with an austerity recovery plan, the United States was the only country not to slip back in to a mild recession because the United States did stimulus.
The main reason that the recession was so deep and long was because of the requirements by many States and local governments to maintain a balanced budget and that meant deep cuts in spending and laying off of government workers that took money out of the economy, and it didn't help that many state and local governments decided to cut taxes even further and that caused even deeper cuts in government services at a time when they were needed more.