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March 07, 2013

Government Spending and the Endless Recession: Cut Spending Now

Japan tried what Obama is trying. It failed.

Other nations slashed spending and prospered.

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.

Those cuts weren't painless, but they put Canada on a trajectory different from ours. Canadian voters value budget surpluses, and Canada managed to avoid almost all the bad effects of the 2007-09 recession.

Why isn't the political class interested in this? Because while a defanged political class may serve the interest of the public it doesn't serve the interest of the political class.

posted by Ace at 02:20 PM

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[krakatoa] Overnight Open Thread (27 Feb 2015) Things Which Are Quokkas And Things Which Are Not Quokkas Open Thread Major Opponent of Vladimir Putin, Get This, Gunned Down In the Street Boeher Attempts to Capitulate to Reid and Obama; Fails AoSHQ Podcast: Guest, @KatTimpf Lawless: Having Been Shot Down by Federal Courts Twice In Attempting to Vote Themselves Powers Not Granted Them By Congress, Obama's FCC Violates the Law a Third Time and Once Again Pronounces Themselves Lords of the Internet Leonard Nimoy, Beloved Creator of "ALF," Dead at 83	« Jeff Zucker Succeeds in Transforming CNN Into MSNBC White \| Main \| Obama: If You're Going to Be a Big Buzzkill About It, I'll Concede I'm Not Allowed to Murder Citizens Without Exigent Circumstances » March 07, 2013 Government Spending and the Endless Recession: Cut Spending Now Japan tried what Obama is trying. It failed. Other nations slashed spending and prospered. 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. Those cuts weren't painless, but they put Canada on a trajectory different from ours. Canadian voters value budget surpluses, and Canada managed to avoid almost all the bad effects of the 2007-09 recession. Why isn't the political class interested in this? Because while a defanged political class may serve the interest of the public it doesn't serve the interest of the political class. posted by Ace at 02:20 PM \| Access Comments <script language="javascript" src="http://adserver.adtechus.com/addyn/3.0/5235/1131537/0/170/ADTECH;loc=700;cookie=info;target=_blank;key=key1+key2+key3+key4;grp=[group]"></script><noscript><a href="http://adserver.adtechus.com/adlink/3.0/5235/1131537/0/170/ADTECH;loc=300;key=key1+key2+key3+key4;grp=[group]" target="_blank"><img src="http://adserver.adtechus.com/adserv/3.0/5235/1131537/0/170/ADTECH;loc=300;key=key1+key2+key3+key4;grp=[group]" border="0" width="300" height="250"></a></noscript>	Recent Comments CharlieBrown'sDildo: "I see no significant downside to any of these pote ..." Bruce J.: " It's raining and goats are sad: http://www.us ..." said no reno customer, ever: "http://is.gd/11N7fF Remember: You had it coming ..." Joanne: "Watched Jindal 's speech at CPAC and was very impr ..." 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