Paul Krugman: Spend Now, Save Later

Paul Krugman:

Spend Now, Save Later: Spend now, while the economy remains depressed; save later, once it has recovered. How hard is that to understand? Very hard, if the current state of political debate is any indication....

At the moment, as you may have noticed, the U.S. government is running a large budget deficit. Much of this deficit, however, is the result of the ongoing economic crisis.... As the crisis abates, things will improve. The Congressional Budget Office... predicts...