There are a lot of people out there – mainly liberals – saying we should not reduce federal spending now because it would halt the tenuous recovery. This is pure baloney! Even if the most aggressive spending cuts proposed by the most fiscally conservative Republicans were to be enacted, the current year’s budget will still be running a trillion dollar deficit.
This Keynesian approach to the economy is suspect at best. But, even if you believed in it, the remaining trillion dollar deficit reduction through spending cuts would still be an incredibly stimulative program!