Ever hear of "Starving the beast"? It's an American conservative political strategy which uses budget deficits to attempt to force future reductions in government expenditure, especially spending on socially progressive programs. The term "beast" is used to denote government and the social programs it funds, including publicly-funded health care, welfare, educational financial aid, and Social Security. Some empirical evidence shows that the strategy may actually be counterproductive, with higher taxes actually corresponding to lower spending: "Controlling for the unemployment rate, federal spending [from 1981 to 2000] increased by about one-half percent of GDP for each one percentage point decline in the relative level of federal tax revenues." The article (written by William Niskanen and Peter Van Doren of the Cato Institute) shows that "a tax increase may be the most effective policy to reduce the relative level of federal spending."
2007-08-25
05:33:30
·
13 answers
·
asked by
It's Your World, Change It
6
in
Other - Politics & Government