I would like to thank The News & Observer for publishing the Nov. 11 piece, “The self-mutilated U.S. economy,” by economist Paul Krugman. For many of us who studied traditional economics before “supply-side” economics became “conventional wisdom,” we still remember that economics is both supply and demand, not just supply.
In past recessions and severe economic downturns, we came out of them with increased public spending which increased employment and thus, demand. Only if we increase employment and demand will we produce the necessary revenues to address deficits without further depressing the economy.
But with the “conventional wisdom” with its cutting spending in play in Washington and Raleigh, the chances of that economic principle and solution being applied looks bleak for the foreseeable future.
Michael L. Monk