” I’m talking about actual economic growth not induced growth.”
For most of this year private sector employment has increased, while public sector employment has not. That’s what you call “actual”.
“Bailouts are not pro-business – they’re anti-business.”
Then why does every business want a bailout when they get into trouble?
” higher interest rates “
Wrong. Interest rates remain at historic lows.
“for the first time in history people are talking about a government default. “
Wrong. The US *did* default on its foreign debt in 1914 by suspending convertabilty, and then again in 1933 by suspending the gold standard for what would turn out to be forever. Fortunately in 1914 the Federal Reserve System had *just* been created, and Treasury Scretary William McAdoo worked with the House of Morgan to handle the worst financial crisis the US had ever seen. Among the actions taken was to shut down the New York Stock Exchange for FOUR MONTHS because the free market was destroying the world economy. The actions were so successful that the Panic of 1914 does not even appear in history texts.
TARP was incredibly unpopular but it may go down in history as being just as successful.
“high debt leads to high interest rates”
As I have pointed out, what is happening right now shows clearly that that is not the case.
“it would’ve “
You continue to use conditional logic rather than actual empirical evidence.
” it still isn’t a direct effect on the GDP”
Wrong again. Purchasing goods and services DIRECTLY contributes to GDP.
“it’s either tax cuts permanently extended or nothing. “
You are blinded by ideology and are willing to destroy the economy as a result. Fortunately neither President Obama nor most of the Congress is as blinded.