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This is in theory and there are some people that even deny the effectiveness of keynesian economics. Expansionary fiscal policy means governments spend more and/or cut taxes to boost demand, jobs, and confidence during a downturn. In 1932, during the Great Depression, the US did the opposite: contractionary policy (spending cuts tax hikes). That drained demand, deepened unemployment, and made the collapse worse. Lesson: When the economy is already crashing, austerity amplifies pain. Stimulus sta
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