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Recommend Robert Reich - The Austerity Death-Trap (Email)

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http://www.opednews.com/articles/The-Austerity-Death-Trap-by-Robert-Reich-111019-769.html

October 19, 2011

By Robert Reich

Ron Paul's newly-unveiled economic plan -- promising to cut $1 trillion from the federal budget in year one (presumably that means 2013) -- is only slightly more ambitious than what we're hearing from other Republican candidates. They're all calling for major spending cuts starting as soon as possible. 

What are they smoking?

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.


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