From Points and Figures:
Headlines all over are cropping up about how the Greek economy is shrinking by leaps and bounds. Portugal’s economy is contracting. Spain’s economy is contracting. It’s all because of those dirty austerity programs they have enacted to get their budgets back into control.
Ironically, Ireland enacted austerity programs, too… yet, their economy only contracted by 1.9% in the third quarter.
What’s the difference? Taxes.
The other countries enacted large tax increases on the wealthy along with government spending cuts. Sounds like Obama’s recent budget! The Irish went against the grain, and cut spending but held the line on most taxes…