A basic economic truism: if people don’t have money to spend, stuff won’t get bought. Sounds like a Yogi Berra observation? Anyway, it’s just another day showing why the idiots running economic policy are, well, idiots.

A drop (behind The Wall Street Journal pay wall):

China posted a surprise drop in exports in June amid slack global demand, revealing further weakness in a driver of growth for the world’s second-largest economy.

Exports in June fell 3.1% from a year ago after an already anemic rise of 1% year on year in May, according to data released Wednesday. That was considerably worse than the expectations that called for a rise of just over 3%.

So, let’ think about this. Governments around the world — from Europe to the U.S. — have been engaged in an orgy of government spending cuts. Stupidly so in the middle of high unemployment. Governments should be spending collectively trillions of dollars more to create jobs, not worry about non-existent inflation or even high government debt (which isn’t even high in many countries like the U.S.).

So, people have less money.

So, fewer people are buying products from China.

So, China’s exports drop.

And, the cycle accelerates.