LETTER: Says spending will ease recession

Posted: 12:01am on Feb 16, 2012; Modified: 6:07pm on Feb 16, 2012

Thoughtful citizens will no doubt note an interesting development in the European Union that has clear implications for our country. The EU has made a great fuss about the need for austerity. The result has been savage budget cuts coupled with hysterical resistance to stimulus spending that could be funded, in part, by deliberate tax increases.

Sound familiar? It should since right-leaning politicians have espoused the same policy on this side of the Atlantic.

Well, the EU is now having second thoughts. It turns out that such measures have not stimulated the growth necessary to dodge recession. Rather, austerity measures have killed economies in Greece and Italy.

The EU is now desperate to stimulate. It understands that this can only happen if governments spend money. In short, austerity alone has proven toxic.

The failure of budget cuts to cure the recession should surprise no one.

Most economists are settled on the fact that, in the short term, the solution to a recession is spending. We need look no further than our own Great Depression to appreciate this.

Tax cuts for the super-rich have crippled our economy. I believe Mitt Romney is the poster child. It is time to come to our senses.

Leaf Schumann

Deming

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