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In Europe Cutting Taxes and Spending Leads to the Best Results

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In Europe Cutting Taxes and Spending Leads to the Best Results

Matthew Melchiorre, the Competitive Enterprise Institute’s Warren Brookes Journalism Fellow, has written a report on so-called austerity in Europe showing that many governments, despite their rhetoric, have not cut spending or taxes and that those governments that do implement austerity have experienced better economic performance than countries that did not cut spending and taxes.

Critics of supposed austerity in Europe oftentimes compare the economic performance of European countries from the same date, ignoring the fact that European governments implemented austerity programs at different times. Melchiorre takes this into account in his report.