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Alternative Visions – The Great Recession of 2020 (or worse) Has Arrived!

Dr. Rasmus explains the dimensions and magnitude of the current contraction underway, including unemployment spiking at a faster and higher rate than in 2008 or 1929. GDP forecast contractions in 2Q20 will be more severe than the worse month in 1932. Rasmus proposes an ‘economic war mobilization’ that requires US government spending to rise from 21% of GDP today to 40%, as in 1942. That means a $4T increase in government spending, from current $4.4 trillion to $8.5T. His phase 1 proposed spending program, published earlier this week on the blog, jackrasmus.com, is reviewed and explained measure by measure. Current proposals in Congress are compared and critiqued as grossly deficient. Why $4T more spending will be needed to protect working class and middle class families and the millions of small businesses. How large corporations abused the economy by giving themselves >$1T/yr in stock buybacks and dividend payouts for 10 years, and should not be given government handouts but reorganized and  restructured. A further Phase 2 program is described.

 

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