What's happening in the UK is contrary to the notion that we need to cut spending to create jobs. At least in the short term, austerity is painful and negative to the economy.I don't get why this is controversial or difficult to understand, because there's an exact analogy for it. The U.S is a fat guy with a weak heart (Britain is a fat midget with a weak heart) who is hooked on smack (loose monetary policy and borrowing from the future).
Lots of smack will kill him slowly. Going cold turkey will probably kill him very quickly and definitely not be any fun. Bernanke is trying to administer methadone. Unfortunately, given the weight and the weak heart, methadone will probably kill him...
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