Saturday, March 03, 2012

For All The Austerity Nuts Out There

People screaming for governments like the U.S. and ours to cut spending right now really need to understand what happens when you do that in an economic environment like we have at the moment. Not just state what they think should happen - unemployment will magically drop, general confidence will miraculously grow, the private sector will heroically fill in the gaps created by the cuts, etc - but actually understand what does happen. And they could do that by, you know, looking at the large-scale experiment that's being run in Europe these days, for example. The results of which are striking, to say the least.

I could be wrong, but I think President Obama, at least, is beginning to comprehend this. He could do a lot worse than listen to economists like Paul Krugman, linked to above, when it comes to matters like this. If nothing else, he definitely has to turn a deaf ear to the lunatics in the American Republican Party who seem Hell bent on sending the world economy straight into the toilet.

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