A basic tenet of Keynesian Economics is that, in times of recession, governments should cut taxes and\/or increase deficit spending. The US government is doing just that right now.<\/p>\n
However, and you knew there had to be a however for this to be a story, most state governments have to balance their budgets. In these hard times, that means they have to raise taxes and\/or decrease overall spending. That means the requirements of their state budgets are working to cancel out federal fiscal stimuli. <\/p>\n
While we’re on the subject, Keynes held that imports are a drain on GDP. When imports decrease, that shows up as a GDP increase, even though it may be indicative of a deeper economic problem, such as a collapse of demand in a nation. GDP in the USA can go higher in the recession due to this and fiscal policies and the economy can still be in the toilet. So if a talking head on the news should start bubbling about an increase in GDP for a quarter, look carefully at how much of that was due to a collapse in demand for foreign goods and unsustainable government overspending.<\/p>\n","protected":false},"excerpt":{"rendered":"
A basic tenet of Keynesian Economics is that, in times of recession, governments should cut taxes and\/or increase deficit spending. The US government is doing just that right now. However, and you knew there had to be a however for this to be a story, most state governments have to balance their budgets. In these […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-17","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/17","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17"}],"version-history":[{"count":2,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/17\/revisions"}],"predecessor-version":[{"id":19,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=\/wp\/v2\/posts\/17\/revisions\/19"}],"wp:attachment":[{"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zzzptm.com\/wordpress\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}