Yet another laboratory model to showcase the futility of draconian spending cuts in the midst of a great recession. This is reality, not a made up fantasy world.
Recessions are bad for government finances. For that reason alone, governments should avoid causing recessions. A long-term plan to balance the budget is a fine, upstanding idea. But rash spending cuts in the short term will make achieving that balanced budget goal harder. Just ask the U.K.
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