Econ Comments & Analysis
NY Sun | Rescuing the Stimulus
Paul Krugman has a column out about how President Obama’s economic program was a political disaster because of the “perception that stimulus failed.” It reminds us of Mark Twain’s jibe about Wagner’s music being “better than it sounds.” At least Twain was aware of the circularity of his famous wise crack.* Professor Krugman seems oblivious to the fact that, in the stimulus racket, success is nothing if it’s not perceived.
Mercatus | Record-High Deficits Are Not "Austerity"
Rather than engage in a semantic discussion about what constitutes an “era of austerity,” I will simply present some salient facts of the US budget for readers who may be unfamiliar with them.
Blogs
Library of Economics | The Keynesian information bubble
Paul Krugman likes to brag that he doesn't read conservative bloggers, as they have nothing useful to say. And certainly the world is full of conservatives making sloppy arguments. But the downside of that strategy is that when he makes silly mistakes, he never finds out about them.
Heritage Foundation | Obama's Austerity Myth
The Obama administration put out the word this weekend that the president’s new budget will end several years of “austerity” in Washington. Come again? Austerity? Since 2009, federal borrowing has skyrocketed by $6 trillion. This year’s budget deficit is expected to fall to somewhere near $500 billion, which sadly is progress, because the first-term Obama deficits all exceeded $1 trillion.
