Obama must let the economy shrink

For too long, economists have fallen in love with their mathematical models of certainty and have ignored how poorly these models reflect the real world. Both Bush's economic advisers, who wanted to emphasize trickle-down tax cuts to America's biggest corporations and our wealthiest citizens, and Obama's economic advisers, who wish to cut taxes on working Americans and increase government spending tremendously to revitalize the economy, have it wrong. The problem we have is too much debt-financed consumption. And yet the proposed solution by both parties is to finance more consumption with additional debt.

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