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HOW TO FIX THE GLOBAL ECONOMY
How to Fix the Global Economy NYT OP-ED by Joe Stiglitz
Joseph Stiglitz points to a way out of the box the country is in due to the Bush administration's fiscal irresponsibility has put the country and the world economy into.
"There is one way out of this seeming impasse: expenditure cuts combined with an increase in taxes on upper-ioncome Americans and a reduction in taxes on lower-income Americans. The expenditure cuts would, of course, by themselves reduce spending, but because poor individuals consume a larger fraction of their income than the rich, the 'switch' to taxes would, by itself, increase spending. Iff appropriately designed, such a combination could simultaneously sustain the American economy and reduce the deficit."
[Stiglitz's op-ed is linked below.]