What We Talk About When We Talk About Austerity

Tyler Cowen's Alfred-E-Newman-esque protestations notwithstanding, this is, indeed, what austerity looks like. It might be easier for the likes of Cowen to recognize this plain fact if the reality borne by ordinary people in this crisis were similarly borne by those bankrolling his sort of quasi-intellectual reactionary witchcraft. So long as the citizenry must cash the checks written by the bankers over the last thirty years, there will be unrest. So-called libertarianism's goal of maintaining the status quo at all costs will likely, in the long run, cost more than anyone can imagine.


Brad Delong:

Austerity, American Style:

Paul Krugman:
Austerity, American Style: Via Mark Thoma, Antonio Fatas has a good piece on the exceptional weakness of government spending in this recovery. I thought I might add to that observation. Let’s look at real government… purchases of goods and services — from all levels of government during three recoveries: the current expansion, the Bush Boom (such as it was), and Morning in America…. Which one is different? Now, this doesn’t include safety-net spending…. But actual government purchases have been uniquely weak, largely because of budget distress at the state and local level…

EDIT: Ezra Klein lays on more data.