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Robert Reich Explains the ‘Austerity Trap’

“When you have high unemployment and a lot of underutilized capacity, the idea is you cut public budgets? That’s insane. Because that leads to a shrinking of the entire economy, when the real problem is … the ratio of debt to the size of the economy overall,” says the former Labor secretary. “If you shrink the economy, that ratio becomes worse and worse.”

Posted on May 8, 2012 READ MORE


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