Friday, September 21, 2012

Cutting spending is not fiscal responsibility. It's fiscal irresponsibility!

A government can be said to be fiscally responsible when it taxes and spends at a level that sustains full output and employment. Doesn't matter what the arbitrary level of taxation, spending or deficits are; what matters is the outcome. Simply cutting spending for the sake of cutting spending is not fiscally responsible behavior of government, especially a currency issuer.


Anonymous said...

100% agree Mike!

The Joker said...

Mike, thank you for teaching MMT to the masses via this forum. However, the vast majority of Americans and our federal government leaders just don't seem to understand this. You are right, they are wrong. That's the long and short of it.