What I find so interesting is that so many of you say,” the government didn’t cut spending in the good years.” What good years people? The only reason those years were good was govt pulling demand forward by borrowing away our future, thats not good.

If you just ignore the future and pretend like the past was normal, Krugman makes sense. Sure don’t worry about deficits. The future will take care of itself but we need to get aggregate demand back!

If on the other hand you realize that aggregate demand was pumped up over long periods of time this is just a correction to normal. Good times indeed.
Josh