Tuesday, September 6, 2011

sent to worldhaveyoursay@bbc.com: austerity or growth?

The major part of the gross domestic product index of growth is consumer spending--the most sacred "job creator." Now I hear defense of government austerity on grounds that governments should save as middle-class people must now do. But as we follow the advice to be prudent and cut down on expenses, we by definition buy less and hence retard growth and employment. It's a pure contradiction. Please ask your commentators to explain how "recovery" from "recession" reconciles these two demands.

Hal Pepinsky, pepinsky@indiana.edu, pepinsky.blogspot.com, 209 St. Pierre St., Worthington, OH 43085-2262, 1-614-433-7386

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