Sorry, I failed to include the URL for the Counterpunch article: http://www.counterpunch.org/2012/06/20/the-real-story-of-the-housing-crash/
On Jun 20, 2012, at 6:57 PM, Eugene Coyle wrote: > In a Counterpunch article on June 20th, Dean Baker seems to recommend > austerity as the long term solution to the recession: > > > >> The Recession Politicians Don't Want to Talk About >> The Real Story of the Housing Crash >> by DEAN BAKER >> The economy is certain to occupy center stage in the presidential race this >> fall. Unfortunately neither Governor Romney nor President Obama are likely >> to give us an accurate account of the economic problems we are now facing. > > > < snip > > > After describing a huge drop in demand as the result of the collapse of the > housing bubble, Baker says that the government is the only remaining source > of demand to fill the gap. But then he turns to austerity for the longer > term: > >> Over a longer term we can expect that net exports will fill the demand gap. >> If we bring our huge trade deficit close to balance by selling more abroad >> and importing less it will provide a substantial boost to demand. However >> this will require that the dollar fall in value relative to the currencies >> of our trading partners, making U.S. products more competitive. That is a >> process that will take time. With many of trading partners also in severe >> slumps, we cannot expect any major improvement in our trade balance in the >> immediate future. > > > What is that but austerity? > > Gene > > _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
