Analysis: U.S. avoidance of austerity pays off

01/28/2013 | Economist (tiered subscription model), The

"A big part of why the U.S. economy is doing better than Europe's is precisely because we did not switch to rapid austerity," said Christina Romer, a former economic adviser to President Barack Obama. The best way to cut the deficit is to limit long-term growth of entitlements, rather than imposing spending cuts that reduce immediate growth, she says. "That is a trade-off which both Mr Obama and the Republicans would be wise to make," according to The Economist.

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Economist (tiered subscription model), The

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