https://hotair.com/headlines/archives/2012/12/01/give-spending-cuts-a-chance/feed/HotAir is the leading conservative blog for breaking news and commentary covering the Biden administration, politics, media, culture, and current elections.en-usTue, 09 Jun 2026 04:27:17 -0400<![CDATA[What is the impact of spending cuts or tax increases on the economy? First, agreement among economists on the impact of budget cuts on growth is far from being settled. However, a few lessons have emerged. Fiscal adjustments achieved through spending cuts rather than tax increases are less recessionary than those achieved through tax increases. Alesina and Ardagna&#8217;s research also reveals that private investment tends to react more positively to spending-based adjustments. Thus, they argue that spending cuts are more sustainable and effective in reducing debt and raising economic growth; thus expansionary fiscal policy becomes possible again.]]>Sat, 01 Dec 2012 20:00:41 -0500<![CDATA[Erika Johnsen]]>https://hotair.com/headlines/2012/12/01/give-spending-cuts-a-chance-n280511