Wrong To Cut Spending Now And It Should Be Increased

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.”

via U.S. Payrolls Rise 18,000; Jobless Rate Climbs to 9.2% – Bloomberg.

About Stephen E. McGaughey
Resident of the City of Coral Gables

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