In response to:

Paul Krugman and the European Austerity Myth

olddoc4444 Wrote: May 09, 2012 10:57 AM
I'm glad someone has put out a cogent article on this subject. There are many trolls on this and other forums who have this austerity=disaster mindset. I have always thought that their causal relationship was weak; I'm glad Mr Mitchell has put together some facts to that effect. Whether one still clings to the post-Keynesian fantasy or not is irrelevent here. Two things happen if a nation borrows too much. The money runs out, and the interest payments become crippling. We are currently approching that point here.

With both France and Greece deciding to jump out of the left-wing frying pan into the even-more-left-wing fire, European fiscal policy has become quite a controversial topic.

But I find this debate and discussion rather tedious and unrewarding, largely because it pits advocates of Keynesian spending (the so-called “growth” camp) against supporters of higher taxes (the “austerity” camp).

Since I’m a big fan of nations lowering taxes and reducing the burden of government spending, I would like to see the pro-tax hike and the pro-spending sides both lose (wasn’t that Kissinger’s attitude about the Iran-Iraq war?). Indeed, this is why...