Tag Archives: prosperity

Study: Balanced Budget Amendment Equals Great Economic Damage

What would happen if a balanced budget amendment (BBA) was passed and implemented? The Center on Budget and Policy Priorities quotes estimates from  a Macroeconomic Advisers analysis: If the 2012 budget were balanced through spending cuts, those cuts would total … Continue reading

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Awarding Winning Nobel Economists Warn Against Austerity

In a letter addressed to President Obama, Speaker Boehner, Minority Leader Pelosi, Majority Leader Reid, and Minority Leader McConnell a number of Nobel winning economists had a number of things to say but their last point summarizes a point I have posted about … Continue reading

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Goldman-Sachs Issues Austerity Warning

“Sequestration, spending caps, and reduced war spending will together reduce real federal consumption and gross investment by 11% over the next two years, ” according to Alec Phillips, an economist at Goldman Sachs. “That’s a very big drop in a … Continue reading

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Nordic Countries Rank Very High on Many Indicators for the Health of a Society

The Economist has an excellent article on why the the Nordic countries are probably the best-governed in the world.  “On any measure of the health of a society—from economic indicators like productivity and innovation to social ones like inequality and crime—the … Continue reading

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Do Republicans Do a Better Job with the Economy? What Does the Evidence Say

Is There an Association between the President’s Party and Party Control of Congress and Economic Growth? Conventional wisdom suggests that Republicans do a better job with the economy than Democrats. We will examine existing evidence to see if the data … Continue reading

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Economic Austerity in the States: A Counterproductive Economic Policy

Another “natural experiment” debunks the erroneous economic theory, known as austerity economics, calling for cuts-backs in government spending during an economic downturn with the promise that government disinvestment will restore economic prosperity. Eurozone austerity experiments have shown that countries that … Continue reading

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Keynesian Economics versus Austerity Economics: More Evidence

The chart below provides further evidence to assess two competing strategies to desired economic recovery. One strategy, partially adapted by the US, is based on Keynesian economics, calling for the government to provide the necessary stimulus to promote increases in … Continue reading

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A Real World Experiment: Stimulus vs. Austerity as Treatment Effects for the Great Recession

Here’s additional evidence against austerity programs during a weak economy. This time the evidence comes in the form of an analysis from Paul Krugman, Nobel-Prize winner in economics. The U.S. utilized a government stimulus program in response to the “Great … Continue reading

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