Liberal economists like Paul Krugman might be calling for more government spending to help our ailing economy, but federal spending cuts are the better bet for long-term economic growth according to a new study released today by The Heritage Foundation’s Romina Boccia.
Krugman stubbornly argues that government should spend more for the economy to thrive. Last spring as the 2013 sequester took place, he offered “a refresher on the nature of our economic woes and why this remains a very bad time for spending cuts.”
Just a few months after that, Moody’s asserted that the U.S. economy “has demonstrated a degree of resilience to major reductions in the growth of government spending.” It appears Krugman and his big-spending allies are the ones in need of a “refresher”: Spending cuts help, rather than hinder, long-term economic growth.
