Austerity during a recession is about as logical as putting a malnourished patient on a starvation diet. Line up all the Nobel Prize winning economists, ask them if a recession demands austerity or stimulus, and… I’ll bet 80%+ will say stimulus. The problem in a recession isn’t a lack of discipline, it’s a lack of demand. Put simply, people are spending less money on… stuff. So companies cut back production of stuff. And workers who make the stuff start to lose their jobs. (Click here to read full post)