If you listen to the Democrats, they will have you believe that if we cut any tiny bit of government spending, that our economy will at least shrink, if not collapse. Clearly this is not the case. Many conservatives over the last couple of days have tried to explain how cutting government spending hasn't always been the apocalyptic scenario being painted by our fear-mongering President. Let me give you a few examples.
Respected economists found 21 instances between 1970 and 2007 in which ten developed countries successfully reduced their debt-to-GDP ratio by 4.5 percentage points or more by relying predominantly or entirely on spending cuts. Countries that increased taxes were much less successful. When government debt shrank through spending cuts, jobs grew.
Neighboring Canada cut its debt by 12.8 percentage points of GDP between 1994 and 2006 and more than doubled its economic growth. Sweden cut spending by over 11 percent and spurred its economy to an annual growth rate of 3.4 percent. New Zealand experienced the same.
After World War II federal spending fell from 42% of GDP to 14.8% in two years, yet the private economy and employment roared back to life. In the 1980s domestic spending fell by about two percentage points of GDP and in the 1990s it fell by more than three. Those were decades of government austerity but rapid growth in private output and wealth. Mr. Obama has taken government spending from 21% to 24% of GDP, yet we've had the weakest economic recovery in three generations.
We've tried Obama's spend-and-spend policies for four years now. Look how well that's worked out for us. Maybe if he gave some other ideas a chance – ideas that have proven to work in other countries and in our own – we could get this country growing again.