TORONTO (AP) — The chief executive of Goldman Sachs says he's against austerity measures in the short term as the U.S. fiscal cliff looms.
Lloyd Blankfein, also chairman of the investment bank, said Wednesday during a talk at the Canadian Club of Toronto that he's all for budget cutbacks in the long term but not in the short term.
Blankfein says "you can't austere yourself into a higher GDP" and says "it's not going to be very good if the medicine kills the patient."
The U.S. faces the prospect of a debilitating "fiscal cliff" in January when Bush-era tax cuts expire and across-the-board spending cuts are set to take effect at the same time. Economists warn that unless Congress acts, the one-two austerity punch would send the fragile economy back into recession.
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Utilities Shut Off Over Unpaid Traffic Fines
Faced with a declining budget, the city of Las Cruces, New Mexico told residents that unless they settled outstanding traffic fines their gas, water and sewage utilities would be turned off.
Swimming Pools Closed
In 2011, cities around the country <a href="http://www.huffingtonpost.com/2011/05/31/city-budget-cuts-summer_n_869202.html?ref=budget-cuts" target="_hplink">suspended summer activities for kids</a> including closing public swimming pools and eliminating library reading programs.
Circumcision Funding Cut
Due to cash-strapped hospital budgets, the state of Colorado in 2011 decided to <a href="http://www.huffingtonpost.com/2011/06/24/circumcision-budget_n_883743.html" target="_hplink">no longer fund circumcision</a>. The measure will save an estimated $186,500 annually.
Dark Fourth Of July Skies
City budgets were stretched so thin in 2011 that many towns could <a href="http://www.huffingtonpost.com/2011/07/03/fireworks-budget-cuts-american-fourth-of-july_n_888845.html" target="_hplink">no longer afford to pay for July Fourth fireworks displays</a>. However, some towns came up with alternative ways to fund the traditional displays.
Volunteer Prison Chaplains
The state of North Carolina was <a href="http://www.huffingtonpost.com/2011/08/08/prison-chaplains-budget-cuts_n_921605.html?ref=budget-cuts" target="_hplink">forced to rely on volunteers to provide religious services to inmates</a> after laying off prison chaplains.
Teachers Take Extra Time Off
In Seattle, teachers agreed to <a href="http://www.huffingtonpost.com/2011/08/10/seattle-teachers-take-fir_n_923790.html?ref=budget-cuts" target="_hplink">take an extra day and a half off</a> to ease budget concerns in 2011.
Arizona State Capitol Sold
<a href="http://www.huffingtonpost.com/2012/01/12/jan-brewer-arizona-democrats-capitol-complex_n_1202636.html" target="_hplink">Arizona Governor Jan Brewer sold the state capitol in 2009</a> to bring in some extra cash. In January 2012, she announced plans to buy the complex back.
Marching Band Uniforms Go Casual
The high school marching band in North Bend, Oregon changed its uniforms to T-Shirts, jeans and knit caps <a href="http://www.huffingtonpost.com/2011/10/21/north-bend-high-school-ba_n_1023851.html?ref=budget-cuts" target="_hplink">after the school couldn't afford to replace the more formal ensembles</a>.
Police Stop Responding To 911 Calls
In Smithfield, North Carolina the chief of police told residents that unless he was allowed to spend $30,000 that was originally meant for office supplies on gas money, the town's police force would no longer be able to <a href="http://www.huffingtonpost.com/2011/11/01/smithfield-north-carolina-police-gas-money_n_1069470.html?ref=budget-cuts" target="_hplink">respond to some 911 calls</a>.
Tearing Up Streetlamps
In 2011, Highland Park, Michigan announced it would be <a href="http://www.huffingtonpost.com/2011/11/07/highland-park-sreetlights_n_1079909.html?ref=budget-cuts" target="_hplink">removing streetlights to help save on energy costs</a>.
Homeless Lose Access To Restrooms
In Sacramento, California a $200 million deficit led the city to install locks on public bathrooms <a href="http://www.huffingtonpost.com/2012/02/13/sacramento-united-nations-warning-homeless_n_1268946.html?ref=budget-cuts" target="_hplink">cutting homeless people's access to water and restrooms overnight</a>.
Baltimore Sells Historic Buildings
Due to a $48 million budget gap, the <a href="http://www.huffingtonpost.com/2012/03/29/baltimore-historic-landmarks-revenue_n_1389222.html?ref=business" target="_hplink">Baltimore government announced plans to sell historic buildings</a> including the home of a 19th century U.S. Senator.