Rants & Epiphanies
•••
“Wisdom that will bless I, who live in the spiral joy born at the utter end of a black prayer.” • — Keiji Haino
“The subject of human creativity is not an ethnic-centric, but a composite subject.” • — Anthony Braxton
“… It is not my mode of thought that has caused my misfortunes, but the mode of thought of others.” • — The Marquis de Sade

Monday, October 3, 2016

A General Theory Of Austerity? || Paul Krugman



Paul Krugman:

Simon Wren-Lewis has an excellent new paper (PDF) trying to explain the widespread resort to austerity in the face of a liquidity trap, which is exactly the moment when such policies do the most harm. His bottom line is that

austerity was the result of right-wing opportunism, exploiting instinctive popular concern about rising government debt in order to reduce the size of the state.

I think this is right; but I would emphasize more than he does the extent to which both the general public and Very Serious People always assume that reducing deficits is the responsible thing to do.







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