General Discussion
In reply to the discussion: Can we stop with the Paul Krugman posts already? [View all]Dragonfli
(10,622 posts)The more people will spend what they have less of, thus increasing demand, thereby driving the need for new suppliers of that increased demand. Therefore austerity inspires confidence in investing in supplying all this new demand and in creating the new businesses required to do so!
It's simple really, if you layoff more federal workers, build less infrastructure and creatively reduce the money available to those lazy elderly earned benefit queens, the more we can reduce what is spent and thus drive the demand that will boost confidence, all the serious people know this.
I say less government spending on stimulus, infrastructure and social programs is the only way to complement less spending by the private sector. Less spending leads to more buying, which in turn leads to confidence in starting my new business to supply all the new demand. I am agreeing with you