Mankiw on the $100M budget cuts:
To put those numbers in perspective, imagine that the head of a household with annual spending of $100,000 called everyone in the family together to deal with a $35,000 budget shortfall. How much would he or she announce that spending had be cut? By $3 over the course of the year--approximately the cost of one latte at Starbucks. The other $34,997? We can put that on the family credit card and worry about it next year.
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2 comments:
Yeah, but if one is of the economic philosophy that it is a good idea for government to stimulate the economy through spending during extreme economic crisis, then cutting isn't the issue.
Agreed, but the cutting is something he is at least tacitly acknowledging to be a good thing. And, I'm not knocking the cutting. Wish Pres. Bush had done it.
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