Tuesday, April 24, 2012
It's Getting Real Now
Robin Wells, a.k.a. Mrs. Paul Krugman, and an outstanding economist in her own right, has a nice piece in The Guardian, which Krugman linked on his site yesterday. Wells reports on the political turmoil currently burning through the Eurozone, as a result of the ignorant, counter-productive, and punishing austerity policies being imposed on the poor and working people of the continent, to enrich and the secure the choke hold of the super rich there across all borders. It can be found by simply clicking here: http://gu.com/p/374d2.
The most interesting point Wells makes, and the one that demands our attention, is that real time experience in this depressed worldwide economy is proving day after day that cutting government spending in these circumstances only further depresses economic activity, and ironically increases deficits. In a demand starved economic environment, reducing government purchases and outlays actually brings on proportionately more debt than that which it unburdens. That is to say, to cut debt by 1% in these circumstances, it is necessary to reduce spending by some greater percentage because revenues fall as the economy suffers from the cuts. A classic downward death spiral.
The upshot: Republicans and conservatives, as we have been saying all along, are dead wrong about everything. What more proof do you need? How much longer do you want to suffer? Are you really willing to risk a deepening crisis and greater depression than the "Great" one, because of some hateful anti-poor and working class rhetoric you have bought to fuel your bigotry?