I'm at a loss to see how Dean is promoting austerity in that article. He says absent other unlikely developments, government spending is the only remedy.
On Thu, Jun 21, 2012 at 1:33 PM, Eugene Coyle <[email protected]> wrote: > Tom, I too can see the logic of Baker's argument -- but only looking by > at it from a boring conventional perspective. What's the difference > between his logic and Larry Summers'? > > But what is it that you think "ain't going to happen"? > > That net exports will fill the demand gap? I'd agree with you. > > Or that there will be a stimulus driven recovery, meanwhile, to placate > the populous until the dollar falls in value and exports zoom? I'd agree > on that with you. > > Or, simply, that there won't be much of a recovery at all, until a new > approach to macro policy is implemented? I'd agree on that with you. > > Gene > > > > On Jun 20, 2012, at 7:04 PM, Tom Walker wrote: > > > 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) > > _______________________________________________ > > pen-l mailing list > > [email protected] > > https://lists.csuchico.edu/mailman/listinfo/pen-l > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l >
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