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Monday, January 07, 2013

The Big Fail

An economy is not like a household:


For an economy is not like a household. A family can decide to spend less and try to earn more. But in the economy as a whole, spending and earning go together: my spending is your income; your spending is my income. If everyone tries to slash spending at the same time, incomes will fall — and unemployment will soar.


The Big Fail - NYTimes.com:

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