Posted by bad_luck on 9/15/2017 4:44:00 PM (view original):
And an actual example: Brazil
They were in a recession in 2015 and decided that huge spending cuts to shrink the deficit were the solution. Unemployment went from 9% to 13% over the next year.
How is Brazil doing now? I'm not worried about a one year hit. I would expect that.
Have you heard about the lost decade or the lost 10 in Japan? In '91 they had a financial meltdown much like we did in 2008. They tried to spend their way out of it. It's now been pretty much the lost 3 decades.... They still haven't recovered.
Countries like Iceland let their banks fail during the 2008 crisis's and they bounced back faster than any other nation.
There's something to be said about hitting rock bottom and then rebounding quickly up over the slow economic malaise of having government spend money to stave off depression.
Btw - Reagan cut taxes in 81 and 86.
9/15/2017 7:18 PM (edited)