No. of Recommendations: 9
The "balanced approach" doesn't work, and what's worse is that a "balanced approach" to Obama means 75% tax increases and 25% spending "cuts" (cuts to increased spending, that is).

First of all, you're ignoring the spending cuts already agreed in the negotiation for the 2011 Budget Controll Bill.



Of course. It's idiotic to include spending cuts that have already been made, *especially* the decline in spending from the wars. That would be like Truman trumpeting the cut in defense spending after World War II. Some accomplishment!


Secondly, the lessons from those 21 countries probably don't apply to the US.
I can't download the AEI paper for some reason, but I'm prepared to bet that ALL of the examined countries had FAR higher government spending even AFTER the cuts.
What applies to near-socialist Scandinavian countries in the 1980s and 1990s doesn't necessarily apply to a country with a comparatively MUCH smaller government role and MUCH lower government spending such as the US. Countries such as Sweden and Germany had a lot of fat they could cut. In the US, at least with regard to social, education and infrastructure budgets, cuts tend to got to bone. The same is not true for agricultural subsidies and defense, of course.



Excuses, excuses. It doesn't surprise me that when the empirical results don't go your way, you just explain them away, *especially* without having read the studies.

Have fun reading the studies that show similar conclusions to the one from the article:

Does Austerity Work? - http://boards.fool.com/does-austerity-work-30044575.aspx

If you can come up with empirical evidence that supports your position that it doesn't apply to the United States (not just your hopeful rationalizations), I would love to see it.
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