Another excellent article by Anthony Gregory.
While Republicans emphasize tax cuts for some groups and increased defense spending, and Democrats stress tax cuts on other groups and increased social spending, both sides agree with the main premises of Keynesianism. The blogosphere erupted over Romney’s concession to a core principle of progressive economics: "If you take a trillion dollars for instance, out of the first year of the federal budget that would shrink GDP more than 5 percent. That is by definition throwing us into recession or depression. So I’m not going to do that, of course. What you do is you make adjustments on a basis that show, in the first year, actions that over time get you to a balanced budget."
Read the rest here
The Independent Institute
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