In the US, Stimulate Demand by Reversing Local Austerity

Paul Krugman for Krugman & Co. @ Truthout - One question that arises when we talk about the possibility of reversing the disastrous push for austerity runs something like this: “O.K., you say you want more government spending, but what should it spend money on?” The truth is that I think the perceived lack of shovel-ready projects in the United States was overstated even in 2009, but it was a real concern.

The point I want to make is that matters now are actually a lot easier: we could get a fairly big fiscal bang just by resuming aid to state and local governments, which would allow them to reverse the big cuts they have recently made.  Read more.

Comments

Popular Posts