Avoiding the Austerity Trap
The garden of the economy needs more than pruning.
Oct 18, 2010, Vol. 16, No. 05 • By MATTHEW CONTINETTI
A prosperity agenda doesn’t stop at reduced spending and reform of entitlements and the tax code. It encompasses support for free trade, deregulation that promotes competition, and a consistent habit of tending the garden of the economy so entrepreneurs can grow and thrive. If you want to defeat the debt without resorting to punishing inflation or punitive tax increases, growth is the only option. Bring prosperity to America, and the debt problem fades away. Austerity, by itself, is not enough. To the contrary: It’s a trap.