Please: is DNC paying attention???
Yes - the reason the unemployed (6 applicants for every 1 job) are no longer spending any $$$ is 'cuz they DON'T HAVE any $$$!!!
A gentle reminder:
GDP = Consumption + Investment + government spending + (Exports − Imports).
Another gentle reminder:
Consumers are NOT spending (~70% of the U.S. economy!).So, where will GDP growth originate???
Businesses are NOT investing (banks aren't lending, either!).
... and the recent strength of the dollar mitigates AGAINST balance of trade!
Now, not everyone at once!
That's right, Johnny: Government Spending!
Now is precisely the WRONG time to be worrying about deficits.
(Where were these deficit-hawk fiscal conservatives when W cut taxes & got us into TWO unfunded wars???)
This is not academic theory.
We have perfectly good RECENT examples of what happens when governments respond to economic downturns with austerity measures: Japan in the 1990s and Argentina in the early years of this decade.
The result of government austerity?
What Paul Krugman calls "the lost decade"!
A suggestion: if you're REALLY concerned about the deficit - RAISE revenue! - increase tax rates on those who can afford it - the wealthy.
We've seen NO EVIDENCE that increasing marginal tax rates on incomes over $1M discourage those earners from working... or that they're resolutely investing their excess $$$ in GDP-promoting economic activity.
As most of us on household budgets realize, increased spending can be offset with increased income.
RAISE MORE MONEY! - increase tax-rate on those who can afford it.
Who are the brilliant folks advocating POVERTY?
Who want to see Hoovervilles pop up across the country??
Now, not the same hands all at once!
Jane? - "The GOP"?
Very good, Jane - you get an "A".
Stop the madness!