Agree 100%.  Picture explains the logic, or lack there of, in this type of policy perfectly.  And really, Obama's policies having been working for the past 2 1/2 years, it's only made matters worse.  So, why do people think that more of the same (only on a larger level) will all of a sudden start working?  Fact is, it won't.

It depends 1. On what services are being cut, and 2. Where the resulting collected income will be directed towards. In this case, it's Bush's tax cuts to the wealthy.

Here we are seeing the economy stagnate because the wealth is being sat on, not circulating.

Say what you will about government spending, but the bottom line is, it's a guaranteed job creator. I'd be more concerned about auditing the efficiency of government services rather than cut them altogether. Government may suffer in terms of efficiency because of lack of competition, but on the other hand, government services are not there to make a profit for it's investors, which some find rather inefficient in itself.

Kowenicki,

I usually agree with you, but since I am one of those upper 2%. All tax cuts do is increase my savings, savings that likely will become an inheritance for my kids rather than go back into the economy any time soon.  As a business owner taxes never stopped me from hiring/investments. After all hiring/investments had me commit to additional expenses. Why would I do it then? Well if I could bring someone on who could make my business more profit I didnt give a rats ass if I had to pay a couple more % points on the profits. I still had more take home profits. 

Yet I am more interested in tax fairness. I make a good deal of money in investments (stocks, bonds, gold, etc.) and in the US that is capped at 15% tax. While I guy working overtime who makes a decent living is paying 25% on that extra income and also spending more time working.   So the person working harder pays more tax than my money working for me.

The time to cut govt spending is when the economy is strong, not when it is weak.  I am also really expecting the cuts to be in the wrong places. We can really cut Defense in the US, but I wouldnt be surprised if with all the cuts Defense spending may even rise.

That seems like a big conflation of the point... as the increases hasn't really been in any of those fields, and yes... job growth has been pretty crappy over the past decade due to excessive government spending and interevention.

If you include the spending called the "Bush Tax Cuts".

Clinton did indeed preside over good economic times despite higher taxes, but don't underestimate the importance of things like the peace dividend from the collapse of the Soviet Union and the end of the Cold War, the fact that the US seemed to be getting its fiscal house in order, and the dot com boom. It was a unique time, sort of a holiday from history when a guy like Francis Fukuyama could write a book called the End of History and not be laughed out of the room.

Closing loopholes while lowering the overall corporate tax rate would be good and should put an end to egregious practices like GE not paying a dime of taxes on billions in profits, but in the face of an incredibly weak economy and the fact that we could literally tax every millionaire and billionaire at the rate of 100% and still not close our deficits, it's spending that has to be cut.

So GW Bush increased the amount of government spending and intervention over that of Clinton and Reagan?

Has the concept of globalization rang a bell with you?  During the past decade, can you answer why China's economy went booming?  Why did they show absurdly high growth rates and end up building a huge manufacturing base?  Was there suddenly mass demand from penguins or kangaroos or other places on the planet?  Or could it be maybe, just maybe, they totally trashed the American manufacturing based, funded by tax cuts?

Yes. (And that was only in 2003. It got much, much uglier.)

So, why do people think having the Republicans in power is going to make a difference?

Hope dies last.