Wrong To Cut Spending Now And It Should Be Increased
July 8, 2011 Leave a comment
It is entirely voodoo economics to reduce government spending in the face of serious unemployment. Consumers are not spending. Business is not expanding and investing. Housing is a mess. Exports are so-so. The only real spender left is the federal government, since state and local governments are still cutting spending and employment.
“Across the board it was a weak [jobs] report,” said Michelle Meyer, a senior U.S. economist at Bank of America Merrill Lynch, in New York. “The recovery is still fragile and growth will continue to be slow. The economy is healing very gradually.”