In response to:

Why Did America’s Economy Boom When Reagan and Clinton Reduced the Burden of Spending?

Colonialgirl Wrote: Mar 07, 2013 7:24 PM
nd they STOPPED the ruaway spending and MINDLESS welfar programs
Steev Wrote: Mar 08, 2013 9:41 AM
the last year of free-spending Jimmy Carter the federal government spent $591 billion. In 1986, the last recorded year of the Reagan administration, the federal government spent $990 billion, an increase of 68%

Triggered by an appearance on Canadian TV, I asked yesterday why we should believe anti-sequester Keynesians. They want us to think that a very modest reduction in the growth of government spending will hurt the economy, yet Canada enjoyed rapid growth in the mid-1990s during a period of substantial budget restraint.

I make a similar point in this debate with Robert Reich, noting that  the burden of government spending was reduced as a share of economic output during the relatively prosperous Reagan years and Clinton years.