Using the latest Organization for Economic Co-operation and Development (OECD) data for all 32 countries that it is available for, there’s a strikingly clear relationship. The countries with the largest stimulus programs suffered the most during the recessions. The more they increased spending or the more they increased their deficits, the worse they did. “Austerity” may be a bad word to some politicians, but the countries that followed Keynesian policy have a trifecta of problems:  poor GDP and job growth, plus they’ve left their citizens with massive debts to pay off. (via RealClearMarkets - Austerity Works: It’s Time to Give It a Try) h/t @lrrykeho
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Using the latest Organization for Economic Co-operation and Development (OECD) data for all 32 countries that it is available for, there’s a strikingly clear relationship. The countries with the largest stimulus programs suffered the most during the recessions. The more they increased spending or the more they increased their deficits, the worse they did.

“Austerity” may be a bad word to some politicians, but the countries that followed Keynesian policy have a trifecta of problems:  poor GDP and job growth, plus they’ve left their citizens with massive debts to pay off.

(via RealClearMarkets - Austerity Works: It’s Time to Give It a Try)

h/t @lrrykeho

Source: realclearmarkets.com

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  1. cselland posted this