John Cassidy at the New Yorker ...
"With repugicans in Congress still
intent on pursuing a strategy similar to the failed one adopted by the
Brits, this is a story that needs trumpeting. Austerity policies are
self-defeating: they cripple growth and reduce tax revenues. The only
way to bring down the U.S. government’s deficit in a sustainable manner,
and put the nation’s finances on a firmer footing, is to keep the
economy growing. Spending cuts and tax increases can also play a role,
but they need to be introduced gradually. [...]
That austerity has led to recession is undeniable. … consumer and investment spending have remained depressed. [...]
In adopting a fiscal stimulus of
gradually declining magnitude over the past four years, the Obama
Administration has administered what was, until recently, the standard
medicine for a sick economy. As one would have expected on the basis of
the textbooks, the American economy, while hardly racing ahead, has
fared considerably better than its British counterpart. [...]
Having adopted the policies of Keynes in
response to a calamitous recession, the United States has grown more
than twice as fast during the past three years as Britain, which adopted
the economics of Hoover (and Paul Ryan)."
No comments:
Post a Comment