How Austerity Is Ushering in a Global Recession is another one from Robert Reich.
But chalk up a big part of Europe’s slowdown to the politics and economics of austerity. Europe – including Britain – have turned John Maynard Keynes on his head. They’ve been cutting public spending just when they should be spending more to counteract slowing private spending.
The United States has been moving in the same bizarre direction. Cutbacks by state and local governments have all but negated the federal government’s original stimulus, and no one in Washington is talking seriously about a second. The pitiful showdown over increasing the debt limit has produced the opposite: a Rube-Goldberg-like process for capping spending rather than increasing it, and a public that’s being sold the Republican lie that less government spending means more jobs.
It is getting to the point that it is hard to choose just one article like this to post. Unfortunately, these types of articles can’t be written fast enough to counter the propaganda that makes people think they just know from common sense that cutting government spending is the solution to a lack of private spending in the economy. This kind of common sense is how stampedes are built.
This collapse is not just the pricking of a bubble, it is a bubble in reverse. It is like a sealed, empty can that is suddenly cooled down. It sucks itself in until it is crushed.