San Diego Housing Market News and Analysis
Spending cuts versus Tax Hikes.....
User Forum Topic
Submitted by CAwireman on August 7, 2011 - 9:23pm
On Meet the Press today Alan Greenspan mentioned an IMF study suggesting spending cuts to be less impactful to the economy than tax hikes.
I was interested in this and dug this up(I'm assuming this is the study he's referring to):
"A number of studies suggest that fiscal contraction associated primarily with declines in spending is accompanied by an expansion of the economy in the short term, whereas adjustments based primarily on revenue increases feature output contractions." Page 9.
"Spending-based adjustments are less contractionary
And on and on.
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