Published on October 21, 2010 | by LawNews
Prof. Daniel Greenwood Publishes ‘Prosperity Comes from Justice, Not Austerity’ in Dissent Magazine
EVEN IF we set aside Keynes’s point about putting idle resources to work, ignore the fact that the federal government can print its own money, and maintain that government spending is analogous to business spending, austerity in this recession would remain cruel and counterproductive.
When a company with a long list of investments that are essential to its future growth discovers that it can borrow at 1 percent, it borrows the money and plans to pay back the loan out of the growth the investments will provide. Indeed, on October 4 the New York Times reported that our largest companies are taking advantage of low interest rates to borrow even though they have no current plans to expand. At these rates, it’s inevitable that something will turn up that is worth doing.