Time will tell if and how much it matters. The fact is that the economy is slowing down and one reason for that is that the new government is imposing austerity measures on the country in order to give tax cuts to the rich. Historically austerity measures will result in deepening of recessions because a significant portion of the population are going to lose well paying government jobs. The ones that don’t lose their jobs are afraid that they are going to lose their jobs so they cut back on spending. The rest of the country is also going to feel the pain when they try to get medical care or access any kind of government service. They are not going to be in the mood to buy a new pair of sneakers or that nice necklace in the window.
Time will tell if and how much it matters. The fact is that the economy is slowing down and one reason for that is that the new government is imposing austerity measures on the country in order to give tax cuts to the rich. Historically austerity measures will result in deepening of recessions because a significant portion of the population are going to lose well paying government jobs. The ones that don’t lose their jobs are afraid that they are going to lose their jobs so they cut back on spending. The rest of the country is also going to feel the pain when they try to get medical care or access any kind of government service. They are not going to be in the mood to buy a new pair of sneakers or that nice necklace in the window.
That’s the kicker - we’re in a technical recession now, before the weight of Nactional Fist’s cuts actually take effect.
This. Worsening our Gini coefficient worsens our ability to recover from recessions.