The Strange Death of Fiscal Policy - Krugman

[JohnWxy]

http://krugman.blogs.nytimes.com/2010/11/03/the-strange-death-of-fiscal-policy/

One clear result of the midterms is that we won’t have anything like a further round of stimulus. And this, in turn, means that the narrative all the Very Serious People will tell is that fiscal policy was tried, it failed, and that’s that.

But the real facts don’t at all support the conventional wisdom.

Actually, let me focus on an international comparison. You often hear the US experience contrasted with Germany: America, we’re told, went for Keynesian policies, while Germany chose austerity, and Germany did better.


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...if we look at actual government purchases of goods and services, as opposed to transfer payments (many of them just payments from the federal government to states), Germany was more Keynesian than the United States:



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[BootinUp]

1. This reminds me of how Germany and France and every other

country was complaining about US stimulus being focused on stimulating the US economy.

[Democrats_win]

2. At first I thought he was talking about Germany and America in the 30s.

At that time, America chose Keynesian economics while Germany chose a form of austerity known as a dictatorship. Well, that didn't work out so well for Germany but America soared. Now, we've chosen the tea bag dictatorship. Now the FED is turning our currency into a wheel barrel currency: 1 loaf of bread costs 50 wheel barrels of currency.

[pscot]

3. Here's what it looked like