This shows more government austerity measures could actually be good for the economy, which as a result, means high spending could be bad for the economy. While making the chart Dolan adjusts government spending figures so that he can ignore “automatic stabilizers” like unemployment insurance and the deficits that are incurred because of reduced tax receipts during a recession. Ignoring these factors, Dolan argues, “gives us a better picture of what the actions of current policy makers have done to the economy” (Matthews 7). In Response to this, Matthews writes “One could quibble over whether eliminating automatic stabilizers is really a good strategy for analyzing the performance of public policy in the U.S. because extending unemployment benefits has been one of the few spending measures that Democrats and Republicans have been able to agree on during the recovery years” (Matthews
This shows more government austerity measures could actually be good for the economy, which as a result, means high spending could be bad for the economy. While making the chart Dolan adjusts government spending figures so that he can ignore “automatic stabilizers” like unemployment insurance and the deficits that are incurred because of reduced tax receipts during a recession. Ignoring these factors, Dolan argues, “gives us a better picture of what the actions of current policy makers have done to the economy” (Matthews 7). In Response to this, Matthews writes “One could quibble over whether eliminating automatic stabilizers is really a good strategy for analyzing the performance of public policy in the U.S. because extending unemployment benefits has been one of the few spending measures that Democrats and Republicans have been able to agree on during the recovery years” (Matthews