A Tale Of Two ExpensesI get a chuckle out of Krugman's wry humour in bearding the lion in his own den.
Social Security outlays are projected to rise from 4.8 percent of GDP now to 6 percent of GDP in 20303. This is a huge crisis, requiring complete overhaul of the system.
Defense spending rose from 3 percent of GDP in 2001 to 4.2 percent last year; you should also add a couple of tenths of a percentage point for non-defense security spending. This was no big deal — certainly not a reason to reconsider the tax cuts sold back in 2001 as easily affordable given large projected budget surpluses.
Saturday, August 14, 2010
Krugman Winks and Laughs at US "Analysts"
From Paul Krugman's blog at the NY Times: