But what about Krugman’s argument that spending cuts have hurt growth in nations such as Portugal, Ireland, Italy, Greece, Great Britain, and Spain?
Well, Alan points out that these nations haven’t reduced spending.
“The PIIGGS imposed no austerity at all on the public sector in the past five years. Government spending on bailouts, subsidies, grants, salaries and entitlements commands a much larger share of these economies than it did just a few years ago.”
via Debunking Krugman’s European Austerity Narrative | International Liberty.