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Breaking News Home | All | Religion | Society | Tech | Choice | FF | SA News
FRONT PAGE  |  7/27/2016
SUNDAY, JUN 9, 2013
Fed study: Tax hikes, not spending cuts, are slowing the recovery
Why is the Obama recovery the weakest recovery since the Great Depression? According to a new study by the Federal Reserve Bank of San Francisco, it is not because the federal government failed to borrow and spend too little during the height of the economic downturn.

Looking ahead, however, the Fed does see fiscal policy slowing growth, but not, as liberals would have you believe, due to spending cuts:

Surprisingly, despite all the attention federal spending cuts and sequestration have received, our calculations suggest they are not the main contributors to this projected drag. The excess fiscal drag on the horizon comes almost entirely from rising taxes. Specifically, we calculate that nine-tenths of that projected 1 percentage point excess fiscal drag comes from tax revenue rising faster than normal as a share of the economy. ...


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washingtonexaminer.com

Response to economic crisis?
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