Tax Increases and Spending Cuts in Italy Will Slow Growth, Not
Speed It Up  Wednesday, 21 September 2011 05:08  In an article
discussing debt problems of euro zone countries the NYT told
readers that a statement issued by the Italian government
yesterday:  "said the government was preparing steps to lift
growth and recently passed measures to control public finances
through tax increases and spending cuts."  It would have been
appropriate to remind readers that spending cuts and tax
increases slow growth by pulling money out of the economy. It is
likely that whatever steps the Italian government might prepare
to boost growth will be more than offset by the impact of its
austerity package.