These experts seem to be missing fundamental: You dont do huge amounts of budget slashing in the middle of a recession. We dont need hundreds of thousands added to the unemployed. Sure, we can trade priorities like trading wars for infrastructure, but wholesale slashing just courts a depression. The solution is to get the country back on its feet, and cut out the wasteful wars. Then close the tax loopholes and get rid of the Bush tax cuts. At that point we can tackle the debt reduction with a vengeance. Backloading the cuts isnt just politics, it's also sound economics.
You're assuming that government spending is helping. What if it's the problem? To illustrate, imagine a hypothetical country where 90% of the working population is employed by the government to enforce needless bureaucratic rules on the 10% of the population that is actually engaged in producing goods and services people actually want. Because of the taxes needed to fund the 90% and the onerous business environment, the country is in a recession. What is the solution? (Hint, it's not to maintain government spending.)
A big government is a "luxury" that poor economies can't afford. This is an old problem. Over two hundred years ago, Jefferson complained that the King of England "has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance."
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[ 4.4 ms ] story [ 21.6 ms ] threadA big government is a "luxury" that poor economies can't afford. This is an old problem. Over two hundred years ago, Jefferson complained that the King of England "has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people and eat out their substance."