So Much for the Claim That We Will Make Different Mistakes from Those Made During the Great Depression

Paul Krugman:

Madmen In Authority: So how much we spend on supporting the economy in 2010 and 2011 is almost irrelevant to the fundamental budget picture. Why, then, are Very Serious People demanding immediate fiscal austerity? The answer is, to reassure the markets — because the markets supposedly won’t believe in the willingness of governments to engage in long-run fiscal reform unless they inflict pointless pain right now... markets will turn on us unless we demonstrate a willingness...