Given that austerity planning has come into vogue in the US Congress, new issues are certain to emerge that will influence how austerity measures might be implemented nationally. Of course, imposing austerity upon a nation implies cuts in government spending and increases in taxes. However, if the American people are to endure deep cuts in public spending, then certain long-held budgeting assumptions may require adjustments. Said another way, if the US economy is so bad that the government must impose austerity measures upon its citizens, then the time has also come to discuss bringing our troops home and cutting the defense budget as well.
Austerity affects butter and guns…
Global Military Spending 2009 [click to enlarge]
Why doesn't the finance industry use DSGE models? (cont.)
57 minutes ago