The countries with the largest stimulus programs suffered the most during the recessions.[...]
Governments weren't able to spend their way out of their problems. "If you look at the experiences of OECD countries over the past five years there's no evidence that countries that reduced government spending relative to GDP had slower economic growth," said Steve Bronars, an adjunct professor in economics at Georgetown University. "If anything, countries that showed greater fiscal restraint had faster growth in GDP and employment over the past few years." (Austerity Works)This chart proves it. The left side is GDP Growth. Higher is better. Across the bottom is Change in Government Spending. Left is less, right is more. The chart shows a strong correlation between less government spending and an increase in GDP.
The charts in the linked article tell the story, and damn to hell Paul Krugman’s absurdly suicidal prescriptions. Go read the whole thing and see for yourself: Austerity Works: Time to Give it a Try.
