Thursday, June 18, 2009

Apologies to politicians of 1990s Japan and 1930s America

In 1930's America, Krugman shows us that a big majority of Americans thought it was critically important that Roosevelt try to balance the budget.

So he did.

And the Great Depression returned.

Today Americans want to make the same mistake, just as the Japanese did in the 90s. We need to cut the past politicians who blew this decision a bit of slack. It's hard to fight a national urge to suicide.

We Americans have less excuse than the people of that era. I hope Obama can convince America not to repeat the same old mistakes.

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