Wednesday, 1 June 2011
Economically illiterate economists: they’re everywhere!
150 economically illiterate economists have petitioned Obama to cut public spending. Apparantly is will cure America’s economic ills.
The flaws in this argument are basic, simple, glaring and elementary.
1. If a low level of public spending is essential to a healthy economy, how come some European counties enjoy similar living standards to America, while having levels of public spending relative to GDP that are double that of the U.S.?
2. The decision as to what level of public spending a county has is a POLITICAL decision. It is the basic political difference between left and right. It is a decision that is made at election time, not by economists.