In fact, all Governments rarely cut spending or taxes. When they do, it brings prosperity! Iceland cut spending after the 2008/2009 crash and they are logging strong growth now, unlike the rest of Socialist States of Europe. See my blog European Austerity Is All About Tax Increases. It's also interesting that the US is seeing a rebounding economy even after the Sequester cuts; which most economists and other people, including our socialist president, said would trigger disaster. See my blog Budget Cutting and Reducing Government Helps.
Below is the story of Cristina Fernandez De Kirchner, socialist president of Argentina, doing her best to run Argentina into the ground AGAIN! Expect ANOTHER international debt default, catastrophic currency devaluations, sky-high inflation thanks to her "management."
Socialism is the ruin of many nations. Let that be a warning to you America! You'd better wake up to the siren call of socialism and Presidents who act unconstitutionally in our own country: Big government brings tyranny.
From Sovereign Man Blog and a hat tip to Zero Hedge:
"Cristina rules by decree here; there is very little legislative power. She may as well start wearing a crown. Just in the last few years, she’s imposed Capital controls. Media controls. Price controls. Export controls.
She’s seized pension funds. [She's seized foreign company assets a la Chavez.] She fired a central banker who didn’t bend to her ‘print more money’ directives. She even filed criminal charges against economists who publish credible inflation figures, as opposed to the lies that her government releases.
Inflation here is completely out of control. The government figures say 10%, but the street level is several times that.
Curiously, even Cristina acknowledges that prices are way too high. But rather than rein in spending and stop the money printing, she’s digging her high heels in even further by launching a new clothing line! Great!
Being here in this laboratory of central planning makes a few things abundantly clear:
Both the United States and pan-European governments are varying degrees of this model, with only a flimsy layer of international credibility separating them from the regime of Cristina.1) Printing money does not create wealth. If it did, Argentina would be one of the richest places in the world again.
2) All of these policies that are ‘for the benefit of the people’ almost universally and up screwing the people they claim to help.
Printing money creates nasty inflation. If you’re wealthy, it leads to asset bubbles, which can make you even wealthier. If you’re poor, you just get crushed by rising prices. Or worse– shortages (remember the recent Venezuelan toilet paper crisis?)
3) Desperation leads to even more desperation. The worse things get, the tighter government controls become... which makes things even worse. It’s a classic negative feedback loop.
So Argentina is really a perfect case study in things to come."