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View Full Version : Not only does 'starve the beast' not work, it actually encourages increased spending!




Zatch
05-18-2011, 01:41 PM
Tax cuts without coinciding spending cuts lower the perceived cost of government which actually encourages more spending. Cato Institute on why the 'starve the beast' strategy for reducing government doesn't work (at the federal level at least):

PDF: http://www.cato.org/pubs/journal/cj29n3/cj29n3-7.pdf

Thoughts?

Southron
05-18-2011, 01:48 PM
As long as they have printing presses, I think we need to fight for spending cuts before tax cuts.

Not that I'm in favor of tax increases either but cuts should be higher priority, IMO.

low preference guy
05-18-2011, 04:36 PM
The strategy does work. The country is about to go bankrupt. Once they do, which will soon happen, the spending will stop.