SEARCH BLOG: ECONOMY.
Economists tell us that in order to correct the federal government revenue/spending imbalance, we will either have to raise taxes or have no-growth or a declining economy... which is then used to justify spending even more. Debt is a problem for the next generation. We need to keep up appearances of prosperity.
A small taste of the impact of reduced spending appeared in the 4th quarter of 2012 as defense spending and corporate inventories shrank [companies produced from their inventories without adequate replacement] resulting in a Gross Domestic Product decrease of 0.1% from the previous quarter. That's hardly reason for panic, but it does tell us that without excessive borrowing, economic measures will look anemic.
The question is whether that is a bad thing.
But a drop in CO2.