Saturday, December 13, 2003

Steve Antler has some interesting simulations of the U. S. Economy under alternate histories of fiscal policy for the Bush administration. He even has one showing that the policy near and dear to my heart, using spending cuts to balance the budget, would be economically painful.

So what? Are we "all Keynesians now?" Well, I'm sure Bush is, even if he doesn't know it. I remember back in the 2000 primary Bush criticizing the Republican congress for trying to "balance the budget on the backs of the poor." Likewise, Bush has talked a lot about stimulating the economy during his presidency, adopting policies like tax rebate checks that originated with the Democrats, not the supply-siders. Anyhow, I'm willing to concede cutting spending too fast would be unwise, while still remaining outraged at the surging spending that is occurring. I'd have been happy if just non-military discretionary spending was frozen. But no, Congress and Bush have had little discretion here, and now they've created a whole new category of non-discretionary spending, a prescription drug entitlement.

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