Obama boasts about having cut government spending during the recession.

I realised long ago that governments are economically illiterate. But it’s worse than that: seems they’re actually economically mad.

According to TPM Livewire, the transcript of one of Obama’s speeches reads, “It’s worth noting, by the way – this is just a little aside – after there was a recession under Ronald Reagan, government employment went way up. It went up after the recessions under the first George Bush and the second George Bush. So each time there was a recession with a Republican president, we compensated by making sure that government didn’t see a drastic reduction in employment. The only time government employment has gone down during a recession has been under me. So I make that point just so you don’t buy into this whole bloated government argument that you’re hearing.”

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Ralph Musgrave - Ralphanomics

COMMENTARIES (SOME OF THEM CHEEKY OR PROVOCATIVE) ON ECONOMIC TOPICS BY RALPH MUSGRAVE, DURHAM, UK. THIS SITE IS DEDICATED TO ABBA LERNER. I DISAGREE WITH SEVERAL CLAIMS MADE BY LERNER, AND MADE BY HIS INTELLECTUAL DESCENDANTS, THAT IS ADVOCATES OF MODERN MONETARY THEORY (MMT). BUT I REGARD MMT ON BALANCE AS BEING A BREATH OF FRESH AIR FOR ECONOMICS.

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