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Economics

Why U.S. Spending Cuts Won’t Kill Too Many Jobs

Jan. 10 (Bloomberg) -- The U.S. began the year with an awkwardly arranged deal that raised taxes. I hope it doesn’t end the year without a deal to limit spending.

The U.K. may have embraced austerity too soon, but the U.S. is far enough along in its recovery that it can begin balancing its books. An impressive new series of papers has estimated the impact of public spending on jobs during the recession, and concluded that we can make moderate budget cuts without sending the economy into a tailspin.