Thursday, May 03, 2012

Reich on Austerity

I heard Robert Reich on Marketplace yesterday. You should listen too.

"What I call "austerical" policy makers also overlook the social costs. Cutting spending when unemployment is high doesn't just worsen unemployment; it also removes the public services and safety nets people depend on when times are tough.

This can lead to political upheaval. Last week, the Dutch prime minister was forced out. In the upcoming French election, Nicolas Sarkozy could well be unseated by a socialist. Across Europe, fringe parties on the left and the right are gaining ground."

You might also want to visit his blog (remember, it's always in the blog roll). He says tomorrow might be really bad news.

Why the Economy is Heading for a Stall

"We’ll know more tomorrow when the jobs report is announced, but today’s report on America’s massive service sector – which make up about 90 percent of the economy – is sobering to say the least."

And the last part will really get you thinking.

"Paranoid double-conspiracy theorists might come to the opposite conclusion: Democrats are allowing Republicans to do this because they want Romney elected and Republicans in charge next year as the economy slides into a terrible recession due to far larger spending cuts already scheduled to kick in then, as well as increased taxes on the middle class."

I wasn't kidding, back in February.

"Do you see how history repeats itself? Look for the next Mussolini in Greece. The people there are desperate for a way out of their crisis. Krugman has already warned us about Hungary. This is not over. Not by a long shot."

Don Brown
May 3, 2012

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