Reducing budget deficits by cutting government spending has a stronger record of economic stimulus than either reducing the deficit with tax increases or increasing government spending. That’s what Harvard economists Albert Alesina and Silvia Ardagna have found in their recent research. They examined 107 instances of large reductions (at least …
Imagine a Congress running in a tough environment—the electorate is angry; a war is going badly; the unemployment rate remains stubbornly high. And imagine such a Congress facing the prospect of passing a nice, pre-election tax cut for all. They’d pass the tax cut faster than Speaker Nancy Pelosi (D–CA) …
Congress is at it again, spending more taxpayer money and significantly adding to the deficit in the process. This latest bout of irresponsible spending is $174 billion tacked on to an otherwise necessary bill to extend long-established, mostly sensible tax-reducing provisions known as the “tax extenders.” The legislation, dubbed Stimulus …
Last week, the President’s debt commission held its kick-off meeting. The National Commission on Fiscal Responsibility and Reform, a group of 18 lawmakers and policy experts, has been tasked with proposing a solution to the mounting financial crisis facing the United States government. As we show in our 2010 Budget …
