An Economics Lesson: Expansionary Economics

openleft.com — There's a pervasive frame that when times get tough, we've got to tighten our belts. But while this might make some sense for families, it's nonsense for the government. Belt-tightening means pulling even more money out, which means even more job losses and weakened family incomes. The only way to get things moving again is if the government counteracts these trends by investing — getting more money into the economy so that it starts bulking up instead of cutting back.

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