We’re coming up on the second anniversary of my piece “Myths of Austerity“, in which I tried to knock down the simply insane conventional wisdom then gelling among Very Serious People. Intellectually it was, I think I can say without false modesty, a huge win; I (and those of like mind) have been right about everything.
in that piece he states:
…somehow it has become conventional wisdom that now [July 2010] is the time to slash spending, despite the fact that the world’s major economies remain deeply depressed.
surely if that was the conventional wisdom at the time today we would see the major economies of the world all with lower spending? because if something is conventional, does that not mean we all do it? and yet, is that the case in the US? in 2010 total enacted federal budget expenditures were $3.721 trillion. in 2012? $3.796 trillion were enacted. looks like either the US doesn’t have Very Serious People as they seem to be flouting conventional wisdom (and still the US economy is teetering on contracting) or paul krugman was wrong when he claims to
have been right about everything