“The boom, not the slump, is the right time for austerity.” So declared John Maynard Keynes 75 years ago, and he was right. Even if you have a long-run deficit problem — and who doesn’t? — slashing spending while the economy is deeply depressed is a self-defeating strategy, because it just deepens the depression.
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Paul Krugman: 'The Boom, Not The Slump, Is The Right Time For Austerity'
Krugman: 'The Boom, Not The Slump, Is The Right Time For Austerity'