Public Spending Cuts in a Great Recession

In an economic slump, it is misguided to cut public expenditure on services such as libraries, education, health care, and so on, as well as to remove welfare protections for the most vulnerable. In a modern monetary system – one in which government issues the currency and preferably permits the exchange-rate to float – financial affordability is not an issue. A currency-issuing government is not like a household.

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