How the Corona Crisis Liberated Massive Public Spending: A Prospect Roundtable

[TexasTowelie]

Deficit phobia is mercifully dead for the duration of the corona pandemic. Along with its devastation of the economy and the public’s health, the crisis has upended the standard economic story about public spending, deficit, and debts.

But austerity economics is one of those zombies that keep arising from the dead. Is deficit obsession really defunct for good?

For now, Congress and the Fed are willing to create almost limitless sums of money to save the economy from outright collapse. A New York Times opinion writer sub-headed his column: “Everyone’s a socialist in a pandemic.”

The macroeconomic counterpart: In an economic collapse, everyone’s a Keynesian.

Read more: https://prospect.org/economy/corona-crisis-liberated-massive-public-deficit-spending/
(American Prospect)

[stillcool]

1. interesting reads there...thanks.