Kansas Governor Sam Brownback Implemented A "Red State Model"
That Was Disastrous
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Austerity has been an even bigger disaster than we thought. "That's not quite a free lunch, but, economically-speaking, it's a free mid-morning snack. This leaves us in an upside-down world where smaller deficits might actually make our debt problems worse. When interest rates are zero, spending cuts can cripple the economy so much that GDP falls more than the government saves. And that means the debt-to-GDP ratio might increase even though government spending is decreasing — like it has in Greece. That's why the IMF thinks infrastructure spending would almost pay for itself right now, and why Larry Summers and Brad DeLong have been saying the same for years now. We can't afford austerity right now." Matt O'Brien in The Washington Post
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"Austerity, Economic Anorexia And The Advisability of Vigorous Infrastructure Spending"
"Lawrence Summers Encourages Infrastructure Investment That Will Pay For Itself"
http://paxonbothhouses.blogspot.com/2014/10/lawrence-summers-encourages.html
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