The Dogma of Recessionism

The pet economic theory held by GOPers here in the states and by German bankers in Europe has a new label; "expansionary fiscal contraction." It is the theory that cutting public spending is supposed to be good for the economy. This theory, lets call it EFC for short, has come under attack by many economists. The economic data indicates that EFC actually causes economic contraction. In this country EFC has caused widespread unemployment and weak economic growth. In Europe EFC is pushing the poorer countries into economic collapse and possibly political and social breakdown. It would be fair to say that EFC is to economics what colloidal silver is to medicine: a dangerous piece of quackery.