Multiplier Effect: When you spend a buck somewhere, that buck gets spent again and again, so the effect of you spending causes more spending. Look, say you hire a painter to paint your house. You pay the painter, who then gets his car fixed. The mechanic then buys a new tool, and the tool company buys material to make more tools. That is what every government does every time when there is a downturn in a country’s economy. Except the Tea Party Republicans. They insist on cutting spending. So the result is less money in people’s pockets, less spent, and less multiplier, fewer jobs, longer recession.
Almost every economist knows that in recession the government spends, and in boom times it pays off debt. Not the other way around. Reducing spending will only drive the economy in the wrong direction. Down. One more reason to use the “moron” appellation on the Tea Party and throw the bums out next election. Yeah.
http://news.yahoo.com/p-500-enters-bear-market-europe-worries-142523281.html
Image: http://img1-cdn.newser.com/square-image/106892-20110331180345/bernanke-were-ready-to-spend-more-to-prop-up-economy.jpeg
Almost every economist knows that in recession the government spends, and in boom times it pays off debt. Not the other way around. Reducing spending will only drive the economy in the wrong direction. Down. One more reason to use the “moron” appellation on the Tea Party and throw the bums out next election. Yeah.
http://news.yahoo.com/p-500-enters-bear-market-europe-worries-142523281.html
Image: http://img1-cdn.newser.com/square-image/106892-20110331180345/bernanke-were-ready-to-spend-more-to-prop-up-economy.jpeg