The fact that the Republicans have FORCED such rapid actions related to the Debt and the Deficit, ARE going to adversely affect EVERY American family, and to an enormous extent.
NO ONE SEEMS TO REALIZE WHAT A DISASTER THIS IS GOING TO BE!
SOMEBODY needs to explain to Congressmen and women that THEY are about to cause MILLIONS OF MORE LOST JOBS!
And the Republicans in the House were all arrogantly proud of what they had done!
They CHOSE members of that Super-Committee who have exactly zero chance of actually agreeing on the necessary massive cuts, so the AUTOMATIC provision WILL kick in.
Again, the House Republicans are PROUD to have forced this action.
It is unbelievable!
They seem to think that the $1.2 trillion has no actual existence, so that chopping it out of the Budget has no consequences.
But the House Republicans are dead wrong about that! That $1.2 trillion is currently SPENT for CONTRACTS to many thousands of American businesses. It even represents about TEN PERCENT of the ENTIRE ANNUAL CASH FLOW in the United States (called the Gross National Product), a HUGE amount.
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WHEN those many thousands of Contracts are terminated on December 1, there will be many thousands of American businesses that suddenly find themselves needing to CUT EXPENSES, and by a total amount of $1.2 trillion. Actually, many of the thousands of businesses will not be able to survive that great of a cashflow reduction, and they WILL go bankrupt AND HAVE TO LAY OFF ALL THEIR WORKERS. But even the companies that may be able to survive will necessarily have to lay off millions and millions of American workers!
As if we did not have ENOUGH problems, the Republicans in Congress have chosen to add in even bigger problems for us!
An INTELLIGENT approach to the enormous problem would certainly involve SMALL STEPS over maybe 50 or 75 years, to keep the Country stable and also to greatly reduce the National Debt. But the House Republicans seem to insist on being in a hurry, and the consequence WILL BE horrific indeed. We may have been in a Recession for the past three years, but THIS will certainly bring on a full-blown Depression, quite possibly WORSE than the Great Depression of the 1930s.
Even the United States is not large enough to handle having 10% of its GDP discarded in a rash moment. For starters, that strongly suggests that business will only need 10% fewer employees to handle all their business. That implies that around NINE MILLION NEW UNEMPLOYED PEOPLE as of December 1!
Where the unemployment rate is currently around 9%, it WILL nearly instantly jump to over 15%. But more than that, the MOOD of American residents will going into emotional depression, and they will NOT consider buying a new car or a new flatscreen TV or anything other than food and utilities. They (rightly) will be SCARED, and so the effects on the US Economy will get multiplied, and where the number of unemployed will get even greater.
One scary part of all of this is that world leaders have started to admit that NO significant improvement, for EITHER the US or Europe, is likely to begin by even 2017.
In any case, we (voters) watched the incompetence of the National Debt silliness, but we (voters) had NO IDEA of how spectacular the consequences would soon be of their inventing an Automatic Reduction of $1.2 trillion as of December 1.
And WE voted all those jokers into Congress??? What were WE thinking?
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C Johnson, Theoretical Physicist, Physics Degree from Univ of Chicago