Straggler writes:If we all deficit reduct at the same time is that a recipe for global recession gone mad?
It is probably a bit more complex than that. However, I do think that we are heading in the wrong direction.
If I go by what I have heard on economic analyses over several decades, there are two things that cause problems for the economy:
- too much consumer spending - consumers ought to save more;
- too much consumer saving - consumers ought to spend more.
I sometimes wonder whether there is even more double talk and self contradiction in economics than there is in biblical literalism.