News for hackers. Stuff that matters.

A comment on Sterling collapses as investors fly into dollars. Parent comment

Re:Sterling collapses as investors fly into dollars by cool_dude85 on Monday September 26, 2022 @06:57AM (#32981528)
>And what's stupid about government reducing income and borrowing in a downturn?

Government finances are not like your household's, reducing spending is exactly the opposite thing the government should do in a recession.

[ Parent | on HN ]
Re:Sterling collapses as investors fly into dollars by wucaworld on Monday September 26, 2022 @07:30AM (#32981753)
That is not correct.

Spending is the appropriate response when faced with a demand driven recession. This is a supply driven recession and reducing govt demand may not be a bad idea.

[ Parent | on HN ]
Re:Sterling collapses as investors fly into dollars by throwawaylinux on Monday September 26, 2022 @07:05AM (#32981569)
I don't know what that has to do with what I wrote though.

Reducing revenue is also one of those things that conventional wisdom says a government "should do" during a recession, so I'm asking why it was stupid.

[ Parent | on HN ]