Reducing Public Spendings: No Way!

Jérôme Cahuzac, who is the Minister of Budget in the socialist French Government, was asked last week why he decided to raise taxes rather than reducing public spendings. 

Jérome Cahuzac

Cahuzac's answer was clear: "The economic theory demonstrates that, in the short term, reducing public spendings has more recessionary effects than a tax increase".

We could not have a clearer definition of the socialist economic mindset: public spendings and tax increases are a necessary good for the economy... but above all necessary to maintain welfareship.