… in similar circumstances. Reagan, for all his mouthing of platitudes, must have secretly understood that in a catastrophic recession (and his recession in 1983 had unemployment not that far below our own), the government must spend. And spend is exactly what the Sainted One did, greatly in excess of anything Obama and today’s congressional Republican extremists are willing to attempt. And things got better. Unemployment dropped steadily until it reached a nearly normal figure around 1986… and it did so in large part because of government spending. See Krugman’s charts.
This isn’t complicated. In hard times, if you eviscerate government spending, you deepen and lengthen the economic misery. Some of us actually think that’s a bad thing. [/snark]