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Will politicians cause a Roosevelt Recession in 2013?

IMG Auteur
Steve Keen
Debt Deflation
Published : February 04th, 2013
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Category : Crisis Watch

Recent economic data from both the UK and US should have taken the wind out of the sails of those in the Anglosphere who – despite clearly contradictory evidence from mainland Europe – continue to argue that fiscal tightening is needed for economic growth is to recover.

The UK, which has followed a fiscal austerity path right from the election of the Conservative-Liberal coalition government in mid-2010, recorded a 0.3 per cent fall in the last quarter of 2012, while the US recorded a 0.1 per cent fall (mainly on the back of declining government expenditure). Getting the government sector out of the way and letting the private sector rip clearly isn’t going according to script, even when you can’t blame Brussels for the policy.

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Steve Keen is associate professor at the University of Western Sydney School of Economics and Finance. As an economist, he does something very unusual : he treats money seriously, and as a result he gets a very different result on how the economy operates.
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