Dan Mitchell, a Senior Fellow atthe Cato Institute, explains in the video that Canada, Ireland, Slovakia and New Zealand are examples of how to
solve America's fiscal crisis. All of these nations made big improvements in fiscal policy by capping the burden of government spending. In only a few years, each country was able to dramatically reduce the share of
GDP consumed by the public sector while also slashing deficits, and in some cases even turning them into surpluses.
"The nations highlighted in this video may not be role models for small government, but they are examples of how nations can get great results with a policy of genuine spending restraint," saidCF&P FoundationPresident Andrew Quinlan. He added, "Simply stated, the best way out of a fiscal hole created by excessive government spending is to
Dan Mitchell of the Cato Institute commented, "Almost all industrialized nations face a fiscal crisis because of too much government spending, but these problems can be solved by limiting the growth of the government." Mitchell also remarked that, "The ideal policy would be dramatic spending reductions, but progress is possible so long as the productive sector of the economy grows faster than the government."
Nations can make remarkable fiscal progress if policy makers simply limit the growth of government spending. This video, which is Part II of a series, uses examples from recent history in Canada,
Ireland, Slovakia, and New Zealand to demonstrate how it is possible to achieve rapid improvements in fiscal policy by restraining the burden of government spending. Part I of the series examined how Ronald
Reagan and Bill Clinton were successful in controlling government outlays – particularly the burden of domestic spending programs.