We need to stop this mentality that we can borrow and spend our way out of the recession. —Tom Reed, Sept. 19, 2012
…our debt has grown to the point where it now totals $17 trillion dollars, or approximately $55,000 per man, woman and child in America. Think about that: for each baby born today, he or she draws their first breath in America owing over $55,000 in debt.–Tom Reed, Oct. 30, 2013 (Tom knows no individual owes any part of the national debt, but he repeats this statement again and again.)
Deficits are inevitable during a recession. Fortunately, views of persons wiser than Tom prevailed.
It’s elementary that spending, public and private, creates demand for goods and services. In a market economy, businesses respond by increasing production to meet the demand, hiring if necessary. Why then do Republicans insist that public spending is wasteful and should be cut to create jobs? It’s nonsense, yet it’s a persistent myth. Responsible Republicans can’t believe this, yet they repeat it. It’s shameful, but it’s a bigger shame that so many believe it.
We face a similar problem today. To extend prosperity to all, we need to take positive action–invest in America and certainly not arbitrarily cut government spending.
© William Hungerford – January 2015