Post-Keynesian Observations

Understanding the Macroeconomy

Economic Disaster Looming (and it’s my birthday)

with 2 comments

Today is my 50th birthday (meaning I was born on the day JFK was inaugurated). It’s been very nice so far, with lots ad lots of kind wishes from friends and relatives, and I was really looking forward to enjoying myself today. Then I read this:

House GOP Lists $2.5 Trillion in Spending Cuts

The first sentence reads, “Moving aggressively to make good on election promises to slash the federal budget, the House GOP today unveiled an eye-popping plan to eliminate $2.5 trillion in spending over the next 10 years.” Absolutely terrifying. I haven’t felt this depressed and hopeless since Sept 11.

If anything close to this really happens, we can say goodbye to economic recovery any time in the foreseeable future. I’d go into details as to why that is true, but a) that’s the subject of the previous two posts (plus several before that) and b) it’s my birthday. Suffice it to say that the people in charge in our country fundamentally misunderstand how the economy actually works. They are more interested, anyway, in name-calling and political one-upmanship.

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Written by rommeldak

January 20, 2011 at 1:48 pm

Posted in Uncategorized

2 Responses

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  1. Happy birthday!

    Glad to see you’re back. Please keep up the blog, and more frequently! Your stuff is some of the clearest and most concise out there. It has helped my understanding a lot.

    To quote Warren Mosler,
    “We don’t have a whole lot of work to do, we only need to get one person who has the national media attention to understand this, and I think the whole thing changes very, very quickly.”

    pauldoc

    January 21, 2011 at 6:18 am

    • Many thanks! I really never intended this to be a blog, per se, just a place where I put explanations for my curious friends and relatives. But, I agree with your concern that we really need to get the word out. This is conservative or liberal, it’s just a pragmatic explanation based on the actual structure of the economy. We are doing our best to commit national suicide, and there’s absolutely no reason for it. It’s very depressing.

      I shall try to be more active!

      rommeldak

      January 25, 2011 at 8:15 pm


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