Slouching Toward a Double-Dip, For No Good Reason

With the US on the verge of another recession, consumers hesitate to spend. The job crisis in the US has reduced revenues, adding to the debt crisis. Yet the US focuses on the wrong priority, slowing spending to ease a debt crisis rather than investing in programs to end the job crisis. Robert Reich, author and former US labor secretary, warns against shallow comparisons that equate US and European debt problems: The US has money to pay its bills, while a handful of European nations are forced to rely on outside assistance. Strong European economies like Germany worry that a slowdown in US spending will reduce their exports. Reich contends, “Every time you hear an American politician analogize the nation's budget to a family budget (as, sadly, even President Obama has done), you should know the politician is not telling the truth.” Misplaced priorities and untruths ignite fears that only compound the economic challenges. – YaleGlobal