Quote:
Originally Posted by Frequitude
Well no s**t cutting spending and raising taxes would be a bad idea. Where was anyone suggesting this? I think both sides of the floor can agree that this would be stupid.
Raising taxes/cutting spending is not the opposite of raising taxes/raising spending (which most Conservatives are scared the NDP/Liberals would do).
Maybe I just misunderstood the point you were trying to get across...
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Krugman is essentially saying that recessions are not the time to be a deficit hawk--period. The government needs to create a stimulus for the economy, and deficit spending is sometimes the only way to create one that's big enough. There are long term costs, but they're far outweighed by both short and long-term gains. That's how I read Krugman's point.