Spending cuts are the only way to grow the economy, curb deficits
The only way to avoid a “fiscal cliff” and relieve budget pressures in a way that grows the economy is to make serious spending cuts, says Washington Examiner writer Veronique DeRugy.
“(S)uccessful debt reduction measures are mostly made of spending cuts rather than a mix of spending cuts and tax increases,” writes DeRugy.
DeRugy points to two budget sectors that are driving deficits and in need of deep reform, entitlements and government workforce costs.
DeRugy also argues for spending cuts over tax hikes, citing research by Obama advisers showing a tax hike equaling one percent of GDP reduces GDP by three percent and the fact private investment have more confidence in spending curbs over tax hikes — giving the economy a shot of badly-needed confidence.
You may read DeRugy’s full column at http://washingtonexaminer.com/give-spending-cuts-a-chance/article/2513583#.UKf-GYWXKGg.
