Data Confirms That Spending Less Increases Economic Growth [So Slash the Budget Already.]

ATR ^ | 2011-03-18 | Ben Wilterdink

[92nina]

In a recently released study from the Joint Economic Committee, the findings overwhelmingly show that cuts in spending grow the economy. The study outlines several key predictors for real economic growth. For instance, the study shows that private investment and private sector jobs increase or decrease in unison. The study also tracked trends from 1971 to 2007 demonstrating that every time government spending and consumptions increased, private employment sharply decreased. The reverse was also shown to be true; every time government spending and investments decreased, private employment increased. When examining government spending as a percentage of GDP, increases lead to the unemployment rate also increasing along with it. As that percentage falls, so does the unemployment rate.

Another highlight of the study was the correlation between successful consolidations of debt and a reliance on at least 85 percent spending cuts, as opposed to attempts to raise revenues. Also supporting this finding, foreign countries were examined to see if the trends matched with data from the United States. Canada, Sweden, and New Zealand were closely studied and the data clearly showed that economic growth was highest when government spending was lowest. Also, their economic growth was lowest (or in some cases even negative) when government spending was at its highest. This is consistent with data from the Organisation for Economic Co-Operation and Development and other reports that have studied the subject...

Read more: http://www.atr.org/data-confirms-spending-less-increases-economic-a5959#ixzz1GybDKMHS

[92nina]

The United States needs to halt the overspending problem in its tracks.

Take this article and others I found to the fight to the Libs on their own turf; put the Left on the defensive at at Digg and at Reddit and in Delicious and Stumbleupon

[GeronL]

The headline is missing something, when government spends less we get growth.