G-20 Looks to Cutting Deficits

Further evidence that the Tea Parties were ahead of the curve:

TORONTO — Despite President Obama’s pitch at the summit meeting for developed nations here for continued stimulus measures to prevent another global economic downturn, the United States will go along with other leaders who are more concerned about rising debt and join in a commitment to cut their governments’ deficits in half by 2013, administration officials said on Saturday.

That goal is the proposal of Stephen Harper, the prime minister of Canada and the host of the two-day Group of 20 conference of developed nations. Mr. Harper wanted it to be part of the communiqué on global economic policy that the group adopts before concluding on Sunday, and he had the support of European leaders, including David Cameron, the new prime minister of Britain, who has proposed the most ambitious austerity plan of spending cuts and tax increases in his country in a half-century.

Mr. Cameron and Mr. Obama, in their first private meeting since Mr. Cameron took office, acknowledged their different approaches toward balancing the need to promote greater economic growth and job creation in the short term with the long-term desire to reduce national debts, which reached dangerous heights during the downturn. But they played down those differences.

Of course the tax increases will suck much needed money out of the economy preventing what is truly needed, growth. Of course, one doesn't have to look far to see why cutting the budgets is key.