Wednesday, January 7, 2009
Stimulus aside, Obama vows future budget restraint
Obama balances massive stimulus with talk of long-term budget belt-tightening
As long as fiscal conservatives continue to have a vice grip on economic policy, we will repeat, endlessly, this pattern of several years' recovery followed by slump or crisis because of fiscal drag. Keynes called it, "Running in a state of perpetual, semi slump."
Read story here.
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2 comments:
For the last 8 years the government has provided tax cuts and increased debt.
On your show you mention that Bush changed course in his last 4 years.
If I understand you correctly in the fist 4 years Bush practice Mike Norman style economics and fiscal conservative economics in the last 4 years.
In Bush's first term there were tax cuts and the government added to the financial net worth of the non-governmental sector (public) at a fairly rapid pace. In his second term Bush was more concerned with fiscal discipline and the deficit fell to 1.2% of GDP, nearly removing all fiscal stimulus at a time when household financial obligations relative to income were at a record high.
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