Despite the rabid drooling by Keynes' butt-kissers, the evidence is clear, and contemporary.
Cut spending = improve the economy.
...There are alternative policies. One is to cut
government spending, or cut it more than you raise taxes. As Boskin
points out, the Netherlands in the mid-1990s and Sweden in the mid-2000s
"stabilized their budgets without recession [with] $5-$6 of actual
spending cuts per dollar of tax hikes."
And he notes that Canada reduced government
spending in the mid-1990s and early 2000s by an amount equal to 8
percent of gross domestic product....
There are those who despise Boskin, such as Barry over here.
Too bad that he doesn't produce any counter-factuals to the above, eh?
HT: AOSHQ
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