We are primed for another recession.
The only thing wrong with the debt and deficit is that they are too small. We need to be increasing government spending, not reducing it.Forbes | Pragmatic Economics
The Coming Recession: How Fiscal Responsibility is Economic Suicide
John T. Harvey | Professor of Economics, Texas Christian University
1 comment:
"As you cut federal spending, the economy–including the private sector–contracts, just as it would if you cut any other kind of spending."
I would add that it looks like it also has some destabilizing effects on the entire system due to the resultant reduction in $NFA flow which many in the non-govt sector need to pay at least interest and taxes...
rsp,
Post a Comment