From the US, but relevant to Australia now we have a govt that believes we need to slash govt spending to help the economy: {quote} One of the biggest common misunderstandings is that governments are like households, which need to tighten their spending when times are tough. Actually, governments and households work in opposite ways... We need government spending and investment to get the entire economy moving forward. When families are back at work with decent wages, government tax revenues will rise and spending on social supports will fall. That’s when government can reduce spending without slowing down the economy... In short, the argument that the government must live within its means to protect our children’s future is backwards. Averting deficit spending now means starving our children’s present and their future. More parents will have to struggle to get by, fewer good jobs will be created, education will suffer, and today’s college students will stumble into their careers saddled with huge debt loads. And our infrastructure will keep crumbling and research will dwindle, making it harder for our businesses to compete in the global marketplace.
Posted on: Mon, 02 Dec 2013 02:47:32 +0000