Monday, July 05, 2010

Germany Shows Us How, Just Like They Showed Argentina

Which of the major industrialized nations has the healthiest economy?

Germany. (for more interesting facts and analyisis of Germany's success story, click here)

Why?

Because Germany is cutting spending, not raising taxes or increasing government spending.

Why does that work to make their economy strong?

Simply, because it increases confidence in their economy. Businesses know they are not going to get hit with ruinous tax increases. Inefficient government and socialized businesses realize that they aren’t going to be bailed out by the German government.

On the one hand businesses can confidently go ahead with improved products and expansion, and government-supported organizations know they must become more effective or fail.

As usual, the Liberals are crying that the poor will suffer.

Why?

Isn’t it better to be able to find work in a growing economy, than to hope for a welfare miracle from a failing one?

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