Your Monday Night Paul Krugman Blogging

Today’s topic is states cutting spending during this recession:

http://www.nytimes.com/2008/12/29/opinion/29krugman.html?th&emc=th

He is of course correct, but what he glosses over is that those governors, so far as I know practically all of them, are forced to cut spending by balanced budget requirements.  Tax revenue is way off because of the recession, and governors are obviously hesitant to raise taxes during a recession.  Government spending of course should remain constant or even increase to prime the pump during economic hard times.  So what he should really be calling for is the repealing of balanced budget amendments, and why we should thank God that efforts to place one in the federal Constitution failed.

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