Liars in prominent positions have made big claims for “contractionary expansion”. We are supposed to believe that if the government cuts back expenditure on education, healthcare and public services, and savages the welfare state, universal prosperity will ensue. Even a child could see this for the dishonest nonsense it is.
GDP is the sum of expenditures on domestically produced goods and services. If a government cuts its spending on goods and services, then, other things equal, GDP will fall. If the government raises taxes on the 99%, then, other things equal, the 99% will reduce its spending, and GDP will fall.
And so it has been. In the latest quarter, Japan, the US and Eurozone have all contracted, the last of these by 0.6 percent, its worst outcome since 2009.
The child is right, and the liars are liars.
Even so, the liars are ecstatic, and within sight of their goal, which is the annihilation of organized labor, repression of real wages, and dismantling of the welfare state. In short, the widening of the gap between the 1% and the 99%.
It’s time to turn the tide on these terrorists. For those of us in sovereign nations: Organize and oppose! In the zone of self-castration (Eurozone): Exit! Exit! Exit!
There is no need for shrinkage.