Consequence to cuts no one thought would happen

Published on NewsOK Modified: March 2, 2013 at 7:26 am •  Published: March 2, 2013
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WASHINGTON (AP) — It's not the first time that government economic engineering has produced a time bomb with a short fuse.

Back in 2011, few lawmakers thought deep and indiscriminate spending cuts, totaling about $85 billion and now starting to kick in, were a smart idea.

The cuts are a reality largely because President Barack Obama and House Speaker John Boehner failed to find a way to stop them.

History shows a long trail of unintended consequences from government actions — or inaction.

President Franklin Roosevelt won re-election in 1936 and believed the Great Depression was winding down.

Roosevelt and Congress thought it was time to cut free-flowing government spending and raise taxes. The Federal Reserve tightened its financial reins. But the fragile economy couldn't withstand the blows and the Depression roared back.


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