Saturday, November 19, 2011

Richard Koo: turmoil results when policymakers do not understand balance sheet recessions


Richard Koo examined the history of recession cycles worldwide, especially the cycle in Japan, to point out that at this time, the US Economy needs more revenue to stimulate growth. Drastic cuts of budget now can cause severe damage to our economy for a long time. For Japan, cutting spending as reactive decision in the 1990 recession cost them 10 years to climb out of the ditch. Now Japan suffers the national debt of 200% GDP. Americans can NOT afford the cuts.

Americans can NOT afford the cuts. Americans on main street ask for JOBS and pragmatic support to homegrown jobs. The American Jobs Act answers the demands. Congress should work more responsibly.


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