Posted by WARREN MOSLER on December 29th, 2008
> On Mon, Dec 29, 2008 at 11:47 AM, Russell wrote:
By Paul Krugman
No modern American president would repeat the fiscal mistake of 1932, in which the federal government tried to balance its budget in the face of a severe recession. The Obama administration will put deficit concerns on hold while it fights the economic crisis.
Good to hear that!
But even as Washington tries to rescue the economy, the nation will be reeling from the actions of 50 Herbert Hoovers ÃƒÂ¢Ã¢â€šÂ¬Ã¢â‚¬Â state governors who are slashing spending in a time of recession, often at the expense both of their most vulnerable constituents and of the nation’s economic future.
State and local governments cut back every down turn, exacerbating the recession.
Means Obama gets to do that much more- that’s a good thing!