Chart of the Day: Austerity Politics

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So what happens if we tighten our belts and cut back on spending, as Republicans unanimously want us to do? A new IMF study estimates the effect of a cutback equal to 1% of GDP, which amounts to about $150 billion in the U.S. According to both the GOP leadership and its crew of presidential candidates, this would be peanuts, a mere down payment on serious budget cutting.

And maybe so. Unfortunately, as the chart below shows, a cutback of that size would lead to lower incomes and dramatically higher unemployment. But wait! There’s more! The IMF study says the effect is twice as big as the one in Chart 2 when central banks can’t cut interest rates. And guess what? The Fed already has interest rates at zero. They can’t cut them any further.

In other words, the GOP’s version of belt-tightening would probably jack up unemployment rates by nearly a full point. Welcome to Rick Perry’s America. (Via Brad Plumer.)

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Minority rule, corruption, disinformation, attacks on those who dare tell the truth: There is a direct line from what's happening in Russia and Ukraine to what's happening here at home. And that's what MoJo's Monika Bauerlein writes about in "Their Fight Is Our Fight" to unpack the information war we find ourselves in and share a few examples to show why the power of independent, reader-supported journalism is such a threat to authoritarians.

Corrupt leaders the world over can (and will) try to shut down the truth, but when the truth has millions of people on its side, you can't keep it down for good. And there's no more powerful or urgent argument for your support of Mother Jones' journalism right now than that. We need to raise about $450,000 to hit our online fundraising budget in these next few months, so please read more from Monika and pitch in if you can.

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