... there are many–among both policy makers and the general public–who are convinced that one of our short-term priorities must be reducing government spending....
This is nothing short of insanity. There is absolutely no question that moves to try to balance the budget will meet with the same success as they did in 1937, when they served to raise unemployment from 14% to 19%. I have already written on this topic many times and so will limit myself to making only three points today:
Forbes — Pragmatic Economics
Why Balancing The Budget Means Economic Catastrophe
John T. Harvey | Professor of Economics, Texas Christian University