History has more than a few examples where government expenditures were drastically reduced but the private economy boomed. For instance, government spending dropped drastically in the US after World War II and after the Korean war. US Government spending fell from about 50% of GDP to 11% of GDP after WWII. There was a recession, but the 50's are remembered as a golden era for the US economy with strong growth, low inflation and low interest rates.
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Budget Cutting and Reducing Government Works
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History has more than a few examples where government expenditures were drastically reduced but the private economy boomed. For instance, government spending dropped drastically in the US after World War II and after the Korean war. US Government spending fell from about 50% of GDP to 11% of GDP after WWII. There was a recession, but the 50's are remembered as a golden era for the US economy with strong growth, low inflation and low interest rates.