Europe's experience shows that hasty budget cuts can be counterproductive when economies are weak. Despite slashing spending and raising taxes, Britain, Spain, Portugal and Italy have all seen their debt burdens rise. Their economies shrank because of the painful austerity measures, which meant their debts grew as a percentage of gross domestic product, or GDP, the broadest measure of economic activity.The best medicine for swollen federal debts, experts of all political persuasions agree, is stronger economic growth. A healthy economy means more people are working, earning money and paying taxes; and fewer are collecting federal benefits such as unemployment checks and food stamps.
How To Fix US Debt Without Hurting Fragile Economy
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