IMF: Budget cuts hurt growth a lot. But tax increases barely matter.

[muriel_volestrangler]

3. Bias from that writer: "the news isn't good"

In fact, it seems pretty good news, to me. It indicates that government has a way to increase GDP - spend money (I presume it has to be spent wisely; but there are plenty of infrastructure projects to be done, public service areas like education and policing to be fully staffed at reasonable pay rates and so on). It also indicates that the "don't tax job creators" mantra is a myth. Thus we can, at the same time as growing the GDP with prosperity-inducing and poverty-cutting measures, keep the deficit within bounds by raising taxes, on those who are already prosperous.