Eideard

A $61.5 billion spending-cut bill passed by the U.S. House of Representatives on Saturday would slow economic growth significantly this year, according to an analysis by the global investment firm Goldman Sachs.

“Under the House passed spending bill, the drag on GDP growth from federal fiscal policy would increase by 1.5% to 2% in Q2 and Q3 compared with current law,” according to Alec Phillips, who signed the analysis…

“This nonpartisan study proves that the House Republicans’ proposal is a recipe for a double-dip recession,” said Senator Charles Schumer, a member of the Senate’s Democratic leadership.

Republicans in Congress, especially conservative Tea Party activists who were elected in November, have touted their fiscal 2011 spending-cut bill and upcoming attempts to impose more U.S. budget cuts as the key to improving the economy and creating jobs.

Which illustrates how out-of-touch with modern economics these clowns can be.

Democrats have countered that while there is a need to cut government spending and budget deficits over the long-term, policy-makers must tread softly in the short-term so the fragile economic recovery underway is not cut short…

With Democrats and Republicans facing a March 4 deadline to reach some sort of deal on funding the federal government, there are worries that a failure would lead to a temporary shutdown of many government offices and programs if there is no deal.

The Goldman Sachs analysis points out that a government shutdown “poses less risk” than proposed spending cuts “as long as it is brief…”

In its fiscal 2012 budget proposal released last week, the the Obama administration forecasted 2011 economic growth of 2.7 percent year over year, while Blue Chip economists estimate 3.1 percent.

Background disclaimer: I’ve been asked a few times to either include market analysis in this blog or offer a separate investing blog. I’ve paid little attention to investing other than studies in economics over my life. But, I got pissed-off enough at the shoddy management of what little I had set aside in mutual funds to begin studies and investing on my own in the downhill side of this Great Recession.

I think they’ve hit the nail smack on the head in this look at Republican reactionaries and their KoolAid Party class warfare allies. Reliance on 19th Century ideology versus essentials proven in practice from the days of Keynes up through Leontiev’s macroeconomic studies illustrates the irrelevance of what American conservatism has become. Or, rather, the irrelevance of those who claim to speak for conservatism – when their economic practices are closer to Mussolini’s corporatism than anything else.

Colorado legislators gave initial approval to a bill requiring slowpoke drivers to pull over and let faster vehicles pass.

The House gave its preliminary approval to the measure, which requires slow-moving vehicles to pull over to the side of the road whenever five or more cars are lined up behind them.

The Denver Post said the proposal has been controversial in rural areas where representatives say it could be dangerous to pull tractors hauling chemical tanks or trucks loaded with hay off the road.

The bill has an amendment attached that would exempt farm vehicles from the law.

Of course, the bill is a laugher. You’d have to get a few county sheriffs willing to waste the time pulling over and ticketing someone who’s violating the ordnance.

Don’t hold your breath!