Mark Thoma believes Pres. Obama's latest remarks show a disappointing embrace of austerity as a...

|By:, SA News Editor

Mark Thoma believes Pres. Obama's latest remarks show a disappointing embrace of austerity as a valid means of economic stimulation. "There is no evidence that this works in a situation like ours, i.e. that deficit cuts create so much confidence that they stimulate the economy," Thoma writes, but "there is plenty of evidence that the fall in demand from deficit cuts is harmful."