EconoMeter: Has the economy turned the corner?
Roger Showley, SAN DIEGO UNION-TRIBUNE
Sunday, May 1, 2011
Kelly Cunningham, National University System
Whatever growth is occurring was largely fabricated by deficit spending, and the economy remains quite tenuous. Prolific expansion of government, quantitative easing, and continued deficit spending are the formula for a frail and unsubstantiated recovery. Spending borrowed dollars on consumption amplifies financial problems by delaying payments with interest added, and burdens earnings that cannot be invested on production. Years of political overpromising and underfunding have created a tsunami of debt swamping the feeble recovery. What we have is more borrowing from foreigners and an even greater threat to the value of the dollar and status as a reserve currency.