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Bernstein, Baker: Trade deficit, not the budget deficit holding back the economy
Posted By Rob Schofield On November 7, 2013 @ 2:06 pm In Uncategorized | Comments Disabled
Here’s the intro to today’s ”must read”  from two of the nation’s most astute economists:
Taking aim at the wrong deficit
By Jared Bernstein and Dean Baker
They’re wrong. So-called austerity measures — lowering budget deficits while the economy is still weak — have been shown both here and in Europe to be precisely the wrong medicine. But they could be on to something important if they popped the word “trade” into that sentence.
Simply put, lowering the budget deficit right now leads to slower growth. But reducing the trade deficit would have the opposite effect. Not only that, but by increasing growth and getting more people back to work in higher-than-average value-added jobs, a lower trade deficit would itself help to reduce the budget deficit….
Read the rest of the essay at the New York Times by clicking here .
Article printed from The Progressive Pulse: http://pulse.ncpolicywatch.org
URL to article: http://pulse.ncpolicywatch.org/2013/11/07/bernstein-baker-trade-deficit-not-the-budget-deficit-holding-back-the-economy/
URLs in this post:
 today’s ”must read”: http://www.nytimes.com/2013/11/07/opinion/taking-aim-at-the-wrong-deficit.html?nl=opinion&emc=edit_ty_20131107&_r=0
 Image: http://pulse.ncpolicywatch.org/wp-content/uploads/2013/11/Jared-Bernstein.jpg
 Image: http://pulse.ncpolicywatch.org/wp-content/uploads/2013/11/Dean-Baker.jpg
 A hard truth about unemployment: http://pulse.ncpolicywatch.org/2013/11/25/a-hard-truth-about-unemployment/
 Don’t forget next week’s lunch with global trade expert Lori Wallach: http://pulse.ncpolicywatch.org/2013/09/16/dont-forget-next-weeks-lunch-with-global-trade-expert-lori-wallach/
 New revenues play essential role in balanced approach to federal budget, reducing poverty: http://pulse.ncpolicywatch.org/2013/09/27/new-revenues-play-essential-role-in-balanced-approach-to-federal-budget-reducing-poverty/
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