[quote=Eugene]Jp: those are all good arguments, but they are long term arguments, they don’t explain why we should be financially austere NOW NOW NOW as opposed to when unemployment comes down a bit from 10%.
xbox: this is not an ideological question, it’s fundamental macro economics: what happens if we cut govt spending and what happens if we don’t. It seems to me that Krugman’s position is much better defended with numbers.[/quote]
What about my post? Does that make an argument to why we cant be financially austere right now? (basically the ‘short term gain for long term pain’ argument.)
If not, then how do we force an economy tooled for government financed expansion back into a private expansion economy without going back into recession?
