February 11, 2015
Wasteful Government Spending

Hereís Brown University economics professor Mark Blyth explaining how lucky we were that Paul Ryanís efforts to wreck the American economy were only partially successful:

Europe is about to basically fall apart by trying to teach a tiny little country the size of Alabama a lesson in moral hazards, which could lead to the implosion of its banking system once again, and this time [ECB President Mario] Draghi has no more tricks in his bag to solve the problem. They really are on a path to blowing up the eurozone and itís looking very likely that theyíll do that.

Back in the United States, you went through the craziness of the sequester and that stuff and, ultimately, $78 billion of discretionary, nondiscretionary, on a $17 trillion economy is enough to be annoying but it wasnít enough to actually do real damage. Once the brakes were off, then, of course, the economy started to recover more. Now, youíve got the eurozone dragging the world economy down; youíve got China slowing down; the United States is the only place left thatís actually growing. Why is that? Because itís the one that cut the least. It doesnít mean austerity is over and it doesnít mean the Republicans arenít going to come back with the same old-time medicine and illogical nonsense masquerading as economics ó because, basically, they represent people who donít want to pay taxes ó it doesnít mean that thatís gone, that weíve all woken up and said, Whoop dee do!


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Posted by Jerome Doolittle at February 11, 2015 05:26 PM
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