January 28, 2011

“Cut and grow” vs. “Invest and Grow”

Matthew D. Mitchell

Senior Research Fellow

“This sort of obsession with cut taxes and let spending continue at its previous pace doesn't make a lot of economic sense,” said Mitchell.  “Spending is a problem for a number of reasons but the main reason is that it drives two things that we know harm economic growth.  If it’s paid for with taxes, we know that taxes can harm economic growth.  There’s actually a great study by President Obama’s former economic advisor Christina Romer and her husband on that, among others.  And if it’s paid for by debt, we know that excessive debt and deficits harm economic growth.”