Quote by Fareed Zakaria
In a very weak economy, when you say 'cut government spending,' what you mean is you're laying off school teachers and you're de-funding various programs that put money into the economy. This means you have more unemployed people that then draw unemployment benefits and don't pay taxes.
Summary
This quote highlights the potential consequences of cutting government spending in a weak economy. It suggests that "cutting government spending" primarily translates into eliminating jobs, particularly those of school teachers, and reducing funding for programs that stimulate economic growth. As a result, the number of unemployed individuals increases, leading to a rise in unemployment benefits and a decrease in tax revenue. By illustrating this chain of events, the quote implies that cutting government spending can potentially exacerbate economic difficulties rather than alleviate them.
Topics
Government
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