Wednesday, January 26, 2011

Yeglesias picked up one the wrong lie

He says:
According to the Obama administration the nation’s fiscal problem is in the long term. According to the Obama administration the nation’s fiscal problem is mostly due to entitlements. And according to the Obama administration in the short-term there’s a large output gap. So why a short-term discretionary spending freeze?
The truth is that the long term deficit problem is right now. The Yglesias delusion is that a stimulus reduces output gap.

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