Jared Bernstein: The War Against the Pointless Pain Austerity Caucus: Not the End, Not the Beginning of the End, But Perhaps the End of the Beginning?
What Debt Crisis, Indeed? Things that Make You Go Hmmmmm…: OK, I know that what’s happening in the debt debate is more complicated than a grad student found some mistakes in a spreadsheet and the spell that had bewitched the nation was broken. But that’s kinda what seems to be happening. This Politico piece tells of some Democrats coming around to the view that “[t]here’s no short-term deficit problem…and there isn’t even an urgent debt crisis that requires immediate attention.”… You gotta love the incredibly juicy irony of what’s going on. Nobel laureates [that's Krugman], former Treasury officials [that's me], think tankers [Josh Bivens and John Irons of EPI], yours truly, and zillions of others have been trying to break through on this for years. Some bespectacled twenty-something [Thomas Herndon] comes along, and for a term paper--a term paper!--tries to replicate Rogoff and Reinhart’s study, he perseveres, gets some solid guidance from his profs, who happen not to genuflect at either the alter of austerity or the academic hierarchy (I’m afraid other profs might have shut the young man down)--and BOOM! Somebody really needs to make a movie out of all of this someday.