Austerity plus fiscal cliff spells disaster in government handling so says Professor Keen in video and slides.
Hey even I could understand this when you go with slides and explain it in graphs against the great depression. Watch Prof. Keen and you should get a pretty good understanding to what it really means in today’s economy and how the bullshit bows and stinks like pew catfood commision…
Economist Compares Fiscal Cliff to the Great Depression: Government Austerity Stalls Recovery
Washington, Dec 6 – Prof. Steve Keen
Congressman Dennis Kucinich (D-OH) yesterday hosted Professor Steve Keen, an award-winning economist known for his correct prediction of the 2007-2008 recession, at a well-attended briefing examining how the “fiscal cliff” resembles the mistakes of the 1930’s in which cut-backs in federal spending resulted in a double-dip recession.
Professor Steve Keen is an economics professor at the University of Western Sydney, Australia. He is the author of “Debunking Economics: The Naked Emperor Dethroned.”
The briefing, held in the Small Business Committee Room, focused on the impact of going over the “fiscal cliff” which could trigger further deleveraging in the private sector, leading to a sharp rise in unemployment and decline in tax revenues as unemployment benefit claims would rise.
Professor Keen found that the support to the economy from the federal government has succeeded in bringing an end to deleveraging in the private sector and stabilizing private sector investment. A cut-back in federal government support threatens to undo that hard-won stability and throw the economy into a downward spiral which would create a double-dip and make the fiscal position worse.
Congressman Kucinich summarized saying “Congress must not jump off the cliff” and must instead “invest in America’s future today for tomorrow.”