Claire Solt PhD
2011-09-05 08:01:15
Recessions are caused by misallocatioon of resources into non productive areas. This time it was mortages to people who could not pay and mortgage backed securities which became questionable.
Recovery is a matter of readjusting priorities. Republicans tried to make that point when they called Obama’s stimulus a spending, not a stimulus. The very concept of gross aggregate demand of Keynsians is farsical. The smartest thing Obama said was we needed to use a scalpel, not a machete to cut spending. Bachman is also right to speak of setting priorities.
Now Eric Cantor is being demonized. I have participated in his Uvote, and believe me he has amassed a big list of potential cuts that nobody would defend.
