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He failed to match his 1981 tax cuts with commensurate cuts in public spending, setting off a huge explosion in the deficit.
Successive policy makers, worried about rising expenditures and falling tax revenue, ignored Keynes's calls for public spending, setting off what he called a "vicious circle".
If Republicans continue to press for cuts of tens of billions from discretionary spending, setting back the economic recovery largely for ideological purposes, Democrats will have to say no, even if that results in a short-term shutdown.
Newell Rubbermaid, the maker of Sharpie pens and plastic storage containers, cut its full-year profit forecast Friday on slumping consumer spending, setting off a 12 percent decline in its share price.
WASHINGTON (Reuters) — Retail sales barely rose in January as tax increases and higher gasoline prices restrained spending, setting up the economy for only modest growth in the first quarter.
THIS week House Republicans overwhelmingly rejected a plan to raise the nation's debt ceiling without simultaneous cuts in taxes and spending, setting up a showdown with President Obama this summer over the budget.
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The transport department's guidelines on road safety spending set a price of just over £1m per life.
Sweden has the biggest government among the rich countries, with public spending set to reach 52% of GDP this year.
In January, the $1.058 trillion in discretionary spending set by law in 2011 will drop to $967 billion without Congressional intervention.
India's economy has been helped by a boom in rural spending set off by strength in agriculture.
In the most recent quarter, that area took 17.5percentt of spending, up from around 11percentt in the early 1980s when the fuel spending set a record.
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