Tag: Deficit

Armstrong economist Nicholas Mangee on the myth of expansionary austerity

When the deep recession hit and tax receipts plummeted, a steady chorus grew: “If we slash government spending, the private sector will explode with economic activity.”

The logic of that assumption was always pretty meager. How would widespread layoffs of teachers, public safety personnel, and road crews become an impetus for private sector activity?

The Supercommittee failed, now what?

If you’re reading this, I suppose I don’t need to waste any time giving background on the so-called Supercommittee that was supposed to come up with $1.2 trillion in deficit reduction. I’ve read lots of reactions about the failure, but…