Deficits: Time Dems Fight Back with the Truth

… and Krugman, as usual, has the goods.

Robert Samuelson has a very peculiar column in which he alleges that we can’t have Keynesian policies because irresponsible Keynesians ended budget responsibility back in the 1960s. Really.

Look, I know that conservatives are still fuming over sex, drugs, rock and roll, and all that; hatred of hippies remains a powerful force in America around 35 years after the last hippie sighting. But look; here’s the history of the ratio of US federal debt to GDP:

OK, something did happen to fiscal responsibility; but it happened circa 1981, not circa 1961. Who was the president then? I’m thinking, I’m thinking.

I’d add that the recent rise in debt/GDP is very different from what happened in the 80s; this time around we really had a crisis that required fiscal support for the economy. What happened in the 80s had no such justification.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s