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View Diary: Krugman and the Paradox of Austerity (93 comments)

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  •  It's not a paradox. It's basic Keynesian economics (0+ / 0-)

    Of course, it really depends on what is cut and what impact those cuts would have -- but it's really just the reverse or flip-side of the basic Keynesian idea that government spending can generate economic activity that actually creates a net positive return, not just for the economy but for gov't revenue.

    The problem is that the international financial community has always preached a different doctrine and the conservative governments that are in the ascendancy around the Western world believe that government spending is a problem and that the greater the spending the greater the problem.

    Coming Soon -- to an Internet connection near you: Armisticeproject.org

    by FischFry on Tue Sep 20, 2011 at 07:31:51 AM PDT

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