Spending cuts and the economy

posted by
May 25, 2011
National Review
by Jim Lacey  
Posted in Commentary

"[A]ccording to Mansori, cutting government spending by $5 causes an automatic $5 fall in Austerityland’s GDP. Worse, because the government is no longer handing out as much money as previously, people will now have less in their pockets for consumption or investment. ... Mansori left out something truly important: Governments have no money. Anything the government spends has to be taken from citizens." (05/25/11)



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