The Truth About Federal Spending - Paul Krugman

[Swede]

So we’re still left with a bit, around 1 point of GDP. That’s the stimulus, more or less. And there are two things you need to know about it. First, it’s temporary, and already fading out fast. Second, a large part of the stimulus “spending” was actually aid to state and local governments, intended not to expand spending but to avert a fall — that is, it was about maintaining government, not expanding it.

Now, pointing out the Obama spending binge is a myth generally produces rage: people know that it happened, because Rush Limbaugh and the Wall Street Journal say so. But that doesn’t make it true.


http://krugman.blogs.nytimes.com/2011/07/29/the-truth-about-federal-spending/

[Romulox]

1. What about the WARS, Mr. Krugman? Free? nt

[banned from Kos]

2. And what is wrong with "maintaining state and local" in a Depression?

the STIMULUS and JOBS program of Feb 2009 was all we could get!


What could we get now? NOTHING! NADA!

[IndianaJoe]

3. He didn't say there was anything wrong with maintaining

state and local government. He's just saying Obama was not the profligate spender the Right likes to say his is.

[banned from Kos]

4. Oh, for sure. Thanks - I have a reflex that makes me defend liberals

when Krugman writes.

IMHO - he his Econ is good - his hyperbole is not.