Two points: 1. I can see the logic of Dean's argument. 2. It ain't gonna to happen.
On Wed, Jun 20, 2012 at 6:57 PM, Eugene Coyle <[email protected]> wrote: > In a Counterpunch article on June 20th, Dean Baker seems to recommend > austerity as the long term solution to the recession: > > > > > The Recession Politicians Don't Want to Talk About > > The Real Story of the Housing Crash > > by DEAN BAKER > > The economy is certain to occupy center stage in the presidential race > this fall. Unfortunately neither Governor Romney nor President Obama are > likely to give us an accurate account of the economic problems we are now > facing. > > > < snip > > > After describing a huge drop in demand as the result of the collapse of > the housing bubble, Baker says that the government is the only remaining > source of demand to fill the gap. But then he turns to austerity for the > longer term: > > > Over a longer term we can expect that net exports will fill the demand > gap. If we bring our huge trade deficit close to balance by selling more > abroad and importing less it will provide a substantial boost to demand. > However this will require that the dollar fall in value relative to the > currencies of our trading partners, making U.S. products more competitive. > That is a process that will take time. With many of trading partners also > in severe slumps, we cannot expect any major improvement in our trade > balance in the immediate future. > > > What is that but austerity? > > Gene > > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Cheers, Tom Walker (Sandwichman)
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