Won't government spending cuts also have an adverse impact on the economy?

[Kasz216]

Short answer... No.

Government spending isn't real economic activity.

It's like the owner of a used car salesmen bragging about his sales because he is buying 5-6 cars from himself a week on bank loans.

It's not REALLY doing anything except building debt.

The economy might LOOK worse, but in reality it won't be changed... and will be able to improve quicker.

 

Which is largely the big difference between tax raises and spending cuts.

One involves mostly the fake economy, while the other tends to directly effect real economic activity.