gut;1435770 wrote:Right on cue, just ignore that spending increases have outpaced GDP growth by a factor of 2-3X.
Keynesians will make absolutely no connection between record spending, record deficits and a historically weak recovery. They claim not to believe deficit spending is sustainable, but they are nowhere to be found calling for surpluses in good economic times.
When are you going to make the connection between the size of the deficit and what's going with the current account deficit and the private desire to save? A "record deficit" makes no difference if it's offset by private desire to save/debt deflation and huge current account deficits.
And don't say "Keynesians are no where to be found calling for surpluses" during good economic times when it was guys like Larry Summers and Brad Delong on board with the Surpluses at the end of the 90's in the Clinton Administration and complaining when the next administration put in placed policies that caused structural deficits (i.e. Medicare Part D and the Bush Tax Cuts) and not merely counter-cyclical fiscal policy.
And your buddy Manhattan Buckeye acknowledges this a lot by pointing out that "Krugman is arguing the opposite of what he argued during the Bush Years when he complained about Bush's deficits".
So, you're wrong. Mainstream Keynesians were opposed to the squandering of the Clinton surplus with policies that were not simply counter-cyclical deficit spending.
On the contrary, it is the folks like Paul Ryan who cared not a word about deficit spending during the Bush years despite their arguments that deficits are
always bad. Back in those days he argued against "green-eye-shade thinking" and that we were going to pay down our debt too fast if we didn't cut taxes and run deficits, etc.