Why the GOP calls for extreme austerity make no sense

[LuckyTheDog]

First of all, even in business it's accepted wisdom that cutting costs is not the way to get out of a financial bind.

Sure, you might have to cut spending some times when money is tight. But most consultants will say that it's wise to keep up investing in marketing and R&D even in bad times, to the extent that you can. Firing your best people (who are often the most expensive) also is something that should be considered a last resort.

Cost-cutting is a sometimes-necessary short-term tactic. But the best strategic position is to do things that increase revenue down the road. You can't cost-cut your way to success and growth.

And when I look at my own life, I certainly am glad that I have not taken the kind of advice the Republicans are dishing out now. When I was young, I was pretty poor and had no meaningful family resources to fall back on. Just about every job I could get paid the minimum wage. So, looking at things from a Republican-in-2011 point of view, my choices were clear. I had no business borrowing $8,000 in student loans -- spending money I didn't have -- in order to pay college tuition.

Applying Republican logic, that kind of reckless spending should have been out of the question. My goals should have centered on cutting my costs and "living within my means." The very idea that I would cut back my working hours -- reducing my already meager earnings -- and borrow money at that point made no sense. But guess what, I did it anyway and it paid off.

Investing in the future is NOT the same as spending. The money I spent on college was not just a "spending spree." It is what elevated me from washing dishes on the overnight shift in an all-night restaurant and allowed me to get a real job. My life was immeasurably improved by my decision, in my 20s, to NOT live within my means. I went into debt to lay the foundation of a better future. I am glad I did.

I hope the United States is smart enough to invest in itself as well.