Republicans Cited A Faulty Study To Push For Drastic Spending Cuts
Advocates for rapid deficit reduction have long used a study from economists Carmen Reinhart and Edward Rogoff, which argues that countries that carry debt burdens in excess of 90 percent of their total economy see slower economic growth, to prop up their argument. There were always problems with the study that kept other economists from taking it as gospel, but new research published this week found fundamental flaws in the study’s methodology.
That has blown a hole in the already-shaky argument that the U.S. is approaching a debt crisis and is thus in need of rapid fiscal consolidation. That means these 11 Republicans who have often cited Reinhart and Rogoff’s paper are going to need new evidence to support their austerity agenda:
Rep. Paul Ryan (R-WI): “Economists who have studied sovereign debt tell us that letting total debt rise above 90 percent of GDP creates a drag on economic growth and intensifies the risk of a debt-fueled economic crisis.” [6/23/2011]
Sen. Jeff Sessions (R-AL): “Four major academic studies have shown that gross debt in excess of 90 percent of GDP results in weaker economic growth.” [3/14/2013]
THE REST:
http://thinkprogress.org/economy/2013/04/16/1875541/11-republicans-who-cited-a-flawed-study-to-push-for-drastic-spending-cuts/
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