Former Secretary of Labor Robert Reich has a new economics teaching video. As Congress begins to devise a new budget, Reich targets the myths of austerity – so that you won’t be fooled by political rhetoric.

Austerity 101

3 Deficit Spending Principles You Need to Know

  1. Deficits are meaningless, except as % of GDP.
  2. Deficit spending grows economy when unemployment and underemployment are high.
  3. Investment spending – like education and infrastructure – is good if return exceeds investment.