May 12 / 2011
Forbes analyst advises US politicians to copy Baltic nations
Tax policy expert Daniel Mitchell, whose article on the economic performance of the Baltic States was published in one of the most influential U.S. business magazine Forbes, calls for U.S. policy makers to copy the Baltic states in terms of dealing with a serious economic crisis. According to the author, both the U.S. and the Baltic States got in fiscal trouble due to the combination of excessive spending and economic downturn.
But unlike the United States, these countries, i.e. Lithuania, Latvia and Estonia didn’t follow the Keynesian policy of more deficit spending. Lawmakers in the Baltic nations recognized that “you cannot spend your way out of recession or borrow your way out of debt”. The Baltic nations imposed real cuts, and not just for one year. According to the tax policy expert, the fiscal restraint has been very successful for the Baltic nations. After suffering a steep downturn, economic growth has returned.
Daniel J. Mitchell is a top expert on tax reform and supply-side tax policy. Mitchell is a strong advocate of a flat tax and international tax competition. Prior to joining Cato, Mitchell was a senior fellow with The Heritage Foundation, and an economist for Senator Bob Packwood and the Senate Finance Committee. He also served on the 1988 Bush/Quayle transition team and was Director of Tax and Budget Policy for Citizens for a Sound Economy. His articles can be found in such publications as the Wall Street Journal, New York Times, Investor's Business Daily, and Washington Times. He is a frequent guest on radio and television and a popular speaker on the lecture circuit. Mitchell holds Bachelor's and Master's degrees in economics from the University of Georgia and a Ph.D. in economics from George Mason University.
Article by D. J. Mitchell "Let’s Copy the Baltic Nations and Really Cut Spending"