There is a growing number of politicians and academics in Greece, who
argue that the solution to the country’s economic problems is a mixture of
policies, which entail a reduction in taxes and government spending at the same
time. Indeed, if we examine these two policy options separately, or apply them
in another context, it would make sense. Reducing taxes would aim to stimulate
consumption and investment, which could boost economic growth. A reduction in
government spending would save money, improving the country’s public finances.
However, in the case of Greece, there are several counter-arguments to these
claims, which concern the efficiency of this combination.
GPPF
