Krugman finally explains what is his magic potion to control the defict once the recession is over:
“Yes, the United States has a long-run budget problem. Dealing with that problem is going to require, first of all, sharply bending the curve on Medicare costs; without that, nothing works. And second, it’s going to require some combination of spending cuts and revenue increases, amounting to at least 3 percent of GDP and probably more, on a permanent basis. I’d argue for doing most of that through higher taxes – and yes, I’m willing to go along with a VAT, as long as it’s used to pay for maintaining the social safety net, not to make room for tax cuts on high incomes.“
So anyone out there who still wants to claim that this guy is ok with tax cuts or a deficit hawk? (and one of the masterminds behind the Clinton’s era lack of spending?)
Please… The guy is the classic tax and spend liberal. And if history has anything to teach about these folks is that they end up spending much more than taxes can afford.