Articles: The Swedish Model: Government Austerity: "Keynesians tell us that cutting government spending will slow economic growth. The exact opposite happened with Sweden. Once it started cutting spending, its economy started growing: 4% in 1994 and 3.9% in 1995. In the 18 years since it started cutting, Sweden's economy grew at twice its previous rate, even faster than the U.S.'s.
And Sweden did not cut its debt and deficits by raising revenue levels. Sweden's government took 62% of its GDP at the high point (1987-91). By 2001, government revenue was under 54%, and in 2011, it was under 50%.
Sweden cut spending and taxes. And its tax system is as flat as a tax system can be.
Instead of imitating Sweden's example of austerity, Obama and the Democrats are championing the exact opposite in every measure. More spending, more taxes, more subsidies, a more progressive tax system, more Krugmanomics. There's a word for that: delusional."
'via Blog this'