The Austerity Death Trap


Here is another gem from Robert Reich, The Austerity Death Trap. I am hoping that if we all repeat this story enough times, it might drown out the fiction from the other side.

I’ll single out just one paragraph from the article because it is right on target for one of the things I keep focusing on. While I am at it, I’ll throw in the next paragraph  from the article after my focus paragraph.  That second paragraph explains Reich’s answer for how to get out of the death trap.

Can we just put ideology aside for a moment and be clear about the facts? Consumer spending (70 percent of the economy) is flat or dropping because consumers are losing their jobs and wages, and don’t have the dough. And businesses aren’t hiring because they don’t have enough customers.

The only way out of this vicious cycle is for the government – the spender of last resort – to boost the economy. The regressives are all calling for the opposite.

The comment I posted on the Truth Out web page for this article was as follows:

What I can never understand is that when Nightly Business Report asks CEO’s about their most important need to start investing again, they never mention “We need more customers.” Maybe they think it is so obvious, it is not worth mentioning. Just once, I’d like NBR to ask a CEO, “Would having more customers get you to start investing again?”

For a business program, you’d think one or two of their reporters might understand the importance of customers to a business.

I have suggested to NBR that the question about customers seems so obvious to me, I cannot figure out why they won’t ask it.

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