Econ Comments & Analysis
Mercatus | There Is Good And Bad Austerity, And Italy Chose Bad
Italians understood the gravity of their economic situation in November 2011 when Mario Monti was appointed, and were prepared to make sacrifices to help pull their country back from a cliff. The political leadership wasted the opportunity, choosing the easier path of higher taxes, and has paid the price at the polls, with a partial defeat.
Forbes | 'We're Getting Away With It' Does Not Excuse Federal Borrowing To Infinity
You know the unpleasant facts. The federal government has been and will likely continue to run an annual deficit of $1 trillion indefinitely. It borrows or prints approximately 40% of every dollar spent.
Mercatus | Austerity: The Relative Effects of Tax Increases versus Spending Cuts
In this paper, we argue that the consensus in the academic literature is that the composition of fiscal adjustment is a key factor in achieving successful and lasting reductions in debt-to-GDP ratio. The general consensus is that fiscal adjustment packages made mostly of spending cuts are more likely to lead to lasting debt reduction than those made of tax increases.
Blogs
FOX Business | Out of Control Government Spending Continues
It turns out; stopping the federal government from spending money is harder than stopping the snow from falling. That's what we saw in Washington D.C. today, and true to form the government sent everybody home for a day off with pay.
