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How, exactly does budget cuts create jobs, or stimulate an economy?

Every thing you cut equals another bread winner on the street, plus another tax payers money out of the loop not to mention each laid off worker will cut way back on spending. Logically that means that budget cuts make this problem worst, not better.

Asked By: mrjonessr41 - 8/22/2011
Best Answer - Chosen by Asker
"Economist Mark Zandi of Moody's Analytics said Sunday that if all $61 billion in proposed cuts for the rest of this year were enacted, the economy's growth could be reduced by half a percentage point. Many forecasters expect the economy to grow at around 3.5% this year... More
Answered By: Ralph B - 8/22/2011
Additional Answers (12)
they don't
Answered By: Ed Jasie - 8/22/2011
 
So, you're saying if you lose your job and source of income that you shouldn't cut back, and instead spend and splurge your way into prosperity?
Answered By: Pfo - 8/22/2011
 
Because it keeps tax payers $ from going in in the first place. Has anyone here taken economics?
Answered By: RJC - 8/22/2011
 
The magical free market, because set the private sector free and supply will create its own demand. Except, in practice, when their is no confidence in the economy,no-one is willing to invest so supply does not rise... More
Answered By: MagpieRhino - 8/22/2011
 
In some ways they can (PLEASE READ THE ENTIRE POST... More
Source(s):
Answered By: REMOVE TAX CUTS FOR THOSE OUTSOURCING JOBS! - 8/22/2011
 
you are confused because you are thinking of government workers as taxpayers when in fact they are tax receipiants... More
Answered By: karl k - 8/22/2011
 
They don't. That's why America had better wake up to... More
Answered By: darrin b - 8/22/2011
 
Cutting back on government, while a good idea, is not good for the economy nor does it help the unemployment problem. Right now we need for the government to spend more on public works projects to get people working again and to put money in circulation. The wealthy corporations are just sitting on their money and... More
Answered By: Older is Better - 8/22/2011
 
if you cut salaries of ceos in america we would have billions for lower paying jobs
Answered By: i was Hacksaw - 8/22/2011
 
Logically speaking, every dollar spent by the government had to be taken out of the economy through taxation. Money in the private sector is spent or invested, take it out and there is less money being spent and invested by individuals that earned it. Yes the govt. spends that money which goes into the economy but in a... More
Answered By: Mike - 8/22/2011
 
If we were at full employment, then a reduction in government CONSUMPTION would mean more private consumption... More
Answered By: ObamaBot THX-1138 - 8/22/2011
 
During times of economic boom budget cuts can be a help to the economy because they put skilled workers back into the work force. But when the economy is bad like now such cuts will lead to a depression.
Answered By: skipjack2012 - 8/22/2011
 
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