Browsing All posts tagged under »fiscal policy«

Amid fiscal profligacy and fears of a looming debt crisis, Spending cuts recommended but is a tax increase necessary?

October 5, 2010 by

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This video by prominent Washington DC based Economist Daniel Mitchell demonstrates that only spending cuts and not an increase in the tax burden are needed to balance the budget.  Although the video refers to an increasingly “big government” America, the same issue plagues most European countries and particularly the United Kingdom.  While the new UK conservative government has the good […]

What happens when politicians, conservatives and liberals get together to make economic policy? a recipe for economic catastrophe!

September 1, 2010 by

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Written by Orphe P. Divounguy In May 2010, something really odd happened: our “great” allies from the other side of the pond decided on a coalition government between a Conservative party, usually the party associated with lower spending/taxes, and the Liberal-Democrats that promised anything but fiscal adjustments.  The Conservatives promised to cut government spending, and […]

Greece’s Debt Crisis: A Sign of Things to come to a Hugely Indebted America?

April 28, 2010 by

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Written by Orphe Pierre Divounguy The Greek government 2010 budget deficit calculated at 13.6% of GDP is simply adding to the highest debt to GDP ratio in the EU (113% of GDP).  The rising debt has led to high borrowing costs, the inability to repay its debts and a severe economic crisis.  The recent current […]

Obama’s debt and the future of the american people continued…

March 1, 2010 by

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What are the implications of running such a high debt?             If we subscribe to the Ricardian equivalence,  assuming that individuals have perfect foresight, we have perfect capital markets and there are intergenerational transfers from one generation to the next, financing deficits through higher taxes later will not alter consumption. This theory built around the […]