Why is austerity in a depressed economy a bad idea? Because an economy is not like a household, whose income and spending are separate things. In the economy as a whole, my spending is your income and your spending is my income. What happens if everyone tries to cut spending at the same time, as was the case in the aftermath of the financial crisis? Everyone’s income falls.
Paul Krugman (b. 1953) American economist, author
“The Legacy of Destructive Austerity,” New York Times (20 Dec 2019)
(Source)
Quotations about:
austerity
Note not all quotations have been tagged, so Search may find additional quotes on this topic.
To suppose, as we all suppose, that we could be rich and not behave as the rich behave, is like supposing that we could drink all day and keep absolutely sober
Logan Pearsall Smith (1865-1946) American-English essayist, editor, anthologist
Afterthoughts, “In the World” (1931)
