The economy in a nutshell: Your spending is my income and my - TopicsExpress

The economy in a nutshell: Your spending is my income and my spending is your income, so if everyone tries to spend less at the same time, everyone’s income falls. So, increasing spending is key to recovery. The easy way to do that is by investing in public infrastructure. This seems a no brainer. But we are not doing it. Instead, we are DECREASING spending on infrastructure. Why? Because the GOP has blocked all public works projects, and instead screamed from the roof tops the danger of deficits. But the market does not agree. The government can borrow at .4% interest. People are lining up to lend the government money. This political debacle has caused the worst depression since the 1930’s.

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