23 Jun 2011 2:08 pm
In the past, such as the great depression and other deep recessions that America has encountered, we usually got out of those slumps by cutting both taxes and cutting spending simultaneously.Not true. Take a look at this chart showing unemployment levels during the Great Depression.Notice how unemployment was going down until around 1937, when it started to rise again.That happened because Roosevelt was pressured by Conservatives to cut spending, which caused a setback in the recovery.Much the same thing that is happening to Obama right now.The government is forced to become the spender of last resort during an economic crisis like this.Republicans seem to be intent on hindering any kind of recovery and maybe even causing a second dip in the recession, because that would benefit them politically.Case in point......my next post. Edited by MistyBlue, 23 June 2011 - 02:17 PM.