The Gospel of Supply Side Jesus
from Al Franken and Don Simpson

The following is an interview that Calpundit did with Paul Krugman. This a must must read. Check out the comments on the interview.

AN INTERVIEW WITH PAUL KRUGMAN

You probably think you know Paul Krugman, the liberal New York Times columnist with never a kind word for George Bush. Think again.
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The Tax-Cut Con
by Paul Krugman

7. What Kind of Country?
The astonishing political success of the antitax crusade has, more or less deliberately, set the United States up for a fiscal crisis. How we respond to that crisis will determine what kind of country we become.

If Grover Norquist is right -- and he has been right about a lot -- the coming crisis will allow conservatives to move the nation a long way back toward the kind of limited government we had before Franklin Roosevelt. Lack of revenue, he says, will make it possible for conservative politicians -- in the name of fiscal necessity -- to dismantle immensely popular government programs that would otherwise have been untouchable.

In Norquist's vision, America a couple of decades from now will be a place in which elderly people make up a disproportionate share of the poor, as they did before Social Security. It will also be a country in which even middle-class elderly Americans are, in many cases, unable to afford expensive medical procedures or prescription drugs and in which poor Americans generally go without even basic health care. And it may well be a place in which only those who can afford expensive private schools can give their children a decent education.

But as Governor Riley of Alabama reminds us, that's a choice, not a necessity. The tax-cut crusade has created a situation in which something must give. But what gives -- whether we decide that the New Deal and the Great Society must go or that taxes aren't such a bad thing after all -- is up to us. The American people must decide what kind of a country we want to be.
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US economic folly should worry us all
Think before gloating over Bush's spectacular fiscal incompetence
by Joseph Stiglitz

In 2001, President Bush misled the American people. He said that a tax cut that was not designed to stimulate the economy would stimulate it. But it did not. He told Americans that the large surpluses that were part of President Clinton's legacy meant the US could afford to cut taxes massively. Wrong again. He did not warn Americans how dubious such estimates can be.

This year President Bush again misled the American people about the economy. Weeks after persuading Congress to pass another tax cut - in some ways even more inequitable than the first - his administration revealed how bad the fiscal position had become. The $230bn surplus inherited from Clinton had turned into a $450bn deficit.

Now, after handing billions to rich Americans through tax cuts, the Bush administration is passing the hat around, asking for contributions from other countries to help to pay for the Iraq war. Even setting aside other dubious aspects of Bush's Iraq policy, the conjunction of misguided giveaways to America's richest people with an international US begging bowl is hardly likely to evoke an outpouring of sympathy.
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