Canada's basket case moment:
But to win its budget wars, Canada first had to realize how dire its situation was and then dramatically shrink the size of government rather than just limit the pace of spending growth
AM: How did we do it? 7:1 spending cut/tax hike. And: "the next minister to ask for funding gets his budget cut by 20 percent." I guess that's the benefit of having a benign dictatorship. Still, the lesson is that the U.S. needs austerity, not growth-killing tax hikes.
