Krugman: Turning a Blind Eye to the Obvious

[ProSense]

Turning a Blind Eye to the Obvious

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Look: until 1980 or so the United States generally paid its way; the ratio of debt to GDP generally fell over time. Then starve-the-beast came to power, and fiscal realism went away. That’s the story; anyone who glosses over that, who makes it a plague-on-both-houses issue or, worse, makes it seem as if Obama is the villain, is in an essential way misleading his readers.

Bear in mind, too, that the signature initiatives of Republican presidents — the Reagan tax cut, the Bush tax cut, the Medicare drug benefit — have all been unfunded deficit-raisers; the signature initiatives of Democratic presidents — the Clinton tax hike, Obamacare — have all been deficit-reducing. (Yes, the stimulus — but that was intended to be temporary, and has in fact proved too temporary; and Bush I’s tax increase was an exception, but the GOP has made it clear that nothing like that will ever happen again.)

Democrats aren’t fiscal saints. But we have one party that has been generally responsible, and tries to pay for what it wants, and another party that consistently, deliberately, takes actions to increase deficits in the long term. Saying this may be shrill; but not saying it is being deceptive.

[Vinnie From Indy]

1. K&R

[bluedigger]

2. What does his chart demonstrate?

I get his point, but his chart means nothing to me...:shrug:

[lumberjack_jeff]

4. It's debt-to-gdp ratio over time.

Debt is currently 60% of gdp

[bluedigger]

5. Thanks for the interpretation!

I loves the Krugster, but sometimes he forgets who his audience is.:crazy:

[snot]

3. Agreed re- the chart; here's another:

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Sorry, for some reason I can't get the image to show up here; but go to http://c-cyte.blogspot.com/2008/08/national-debt-under-democratic-vs.html and click on the image to get there.

If you compare the two charts, the one at the link I've given looks to be a clearer version of the same thing, although it's only through 2006 (found through another DU'er back around then).

[pscot]

6. Like this?

[snot]

8. Yes, thanks!

[davidpdx]

7. Go Krugger!