When no one buys what you produce, you lose your job (or, if you own the company, your business). The U.S. economy has suffered millions of job losses because we are not spending enough to keep everyone in their jobs. Look at Table B-1 of the BLS monthly jobs report and it’s clear: every industry … Continue reading »
Dozens of little Hoovers
Economic policy is full of challenging decisions where the right answer is unclear. It is fortunate, then, that the tragedy of our current economic conditions makes one policy response very clear: We must help state and local governments maintain the spending they had planned a year ago. Right now almost all of the state governors … Continue reading »