Austerity or stimulus? What we need is growth

posted by
March 26, 2012
Cato Institute
by John H. Cochrane  
Posted in Commentary

"Austerity isn’t working in Europe. Greece is collapsing, Italy and Spain’s output is declining, and even Germany and the U.K. are slowing down. In addition to their direct economic costs, these 'austerity' measures aren’t even swiftly closing budget gaps. As incomes decline, tax revenue drops, and it becomes harder to cut spending. A downward spiral looms. These events have important lessons for the U.S." (03/21/12)  

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