The Fight Over 'Austerity'

From John Stossel's blog: "Austerity." The word means "self-denial" but politicians rarely "deny" themselves anything. Despite the media wailing about "austerity," there have been few real cuts. Few in Congress actually want to cut spending. Senator Rand Paul explains why he is one of the few who does. Leftists say Europe's poor economy proves that "austerity" fails. But Cato Institute economist, Dan Mitchell, says Europe didn't even give "austerity" a chance to fail. There have been no spending cuts. As the data shows, spending increased (except finally in Greece, where they had to cut). Bob Kuttner, author of "Debtor's Prison: The Politics of Austerity Versus Possibility", says government can spend its way to prosperity. He debates economist Mark Skousen. Radio host Dave Ramsey says debt is a behavioral problem and government must learn self-control. EconStories co-founders, John Papola and Russ Roberts, say the intellectual debate on "austerity" really began about 80 years ago.