Thursday, January 31, 2013
Don't Repeat Economic History
Unfortunately, that is exactly the wrong thing to do in a struggling economy. And this is definitely a struggling economy. While Wall Street and the giant corporations are doing very well (and making record-breaking profits), the rest of America is still trying to shake off the recession. Cutting government spending will hurt those people (throwing many more into abject poverty) and it would take money out of the economy (hurting economic growth and small businesses).
The only way out of this economic mess is through job creation, which will require some government spending. The deficit and the debt do need to be reduced, but that can only happen by putting millions of Americans back to work (which takes them off government rolls and makes them taxpayers again). Cutting spending (and reducing taxes on the wealthy) right now will just hurt the economy, and extend the recession's effects for most Americans -- just like it did when Hoover tried it.