Monday, May 14, 2012

Fiscal Austerity in Europe Doesn't Mean Large Spending Cuts | Mercatus

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Most importantly, meaningful structural reforms were seldom implemented. Whenever cuts took place, they were always overwhelmed with large counterproductive tax increases.
This so-called balanced approach—some spending cuts for large tax increases—has been proven to be a recipe for disaster by economists. It fails to stabilize the debt, and it is more likely to cause economic contractions.

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