The US Needs to Spend to Overcome Recession
Paul Krugman, The New York Times | December 2, 2008
Public spending, especially on infrastructure and new technologies, is needed to build up steam in this stagnant economy. ++ Building up more state debt and increasing the budget deficit is nothing to worry about right now. ++ Cutting back on spending would do nothing to lower short term interest rates, which are already close to zero. ++ A tight budget could bring long-term rates down a little, but only by making sure the economy will remain depressed for a long time. ++ For the US, spending now will bring benefits for future generations.
