By now, it’s been thoroughly proven by events that austerity policies backfire. Cut public spending in a deep downturn, and you only worsen the slump. Europe is the more extreme version of the proof, but even the United States, which is technically out of recession, faces a needlessly slow recovery. We’ve reduced deficits by slashing spending, raising taxes, and making sequester deals, but the supposed reward in the form of restored business confidence never arrives. Austerity, as Mark Blyth writes, neither restores growth not reduces the debt ratio, because slow growth (and in some cases negative growth) makes the debt loom that much larger.
|By: Robert Kuttner Sunday August 18, 2013 1:59 pm|
|By: Jon Walker Monday July 11, 2011 10:42 am|
It is true the Republicans could go after this “sacred cow” to get something they want more. But there is nothing they want more. “No new taxes” isn’t an aspect of the Republican party platform, is it now essentially their entire brand. If the Republican party supports raising taxes so a Democrat can reduce the deficit, what would be the pitch the GOP uses to win over non-religiously conservative upper middle class voters?