Desperate Keynesians | Cato Institute

Desperate Keynesians | Cato Institute: "Mr. Krugman particularly complains that “harsh spending cuts” have not worked in Ireland or the United Kingdom. After their banking crisis, the Irish increased government spending as a percentage of GDP by almost 30 percent and now have cut that back so government spending is “only” about 16 percent higher than it was in the full employment days of 2007 — not exactly most people’s definition of austerity. The British, despite talking about cutting government spending, have yet to reduce it by even one full percentage point from 2011, and are still spending 11 percent more of their GDP on government than they were in 2007. Where is the “austerity,” Mr. Krugman?"