The Vicious Global Circle
from the Working Life blog:
The Vicious Global Circle
Posted on 09 July 2013.
A basic economic truism: if people dont have money to spend, stuff wont get bought. Sounds like a Yogi Berra observation? Anyway, its just another day showing why the idiots running economic policy are, well, idiots.
A drop (behind The Wall Street Journal pay wall):
China posted a surprise drop in exports in June amid slack global demand, revealing further weakness in a driver of growth for the worlds second-largest economy.
Exports in June fell 3.1% from a year ago after an already anemic rise of 1% year on year in May, according to data released Wednesday. That was considerably worse than the expectations that called for a rise of just over 3%.
So, let think about this. Governments around the world from Europe to the U.S. have been engaged in an orgy of government spending cuts. Stupidly so in the middle of high unemployment. Governments should be spending collectively trillions of dollars more to create jobs, not worry about non-existent inflation or even high government debt (which isnt even high in many countries like the U.S.). ......................(more)
The complete piece is at:
http://www.workinglife.org/2013/07/09/the-vicious-global-circle/#sthash.ELonFT2X.dpuf