Shrinking government led to our fiscal crisis

Published Saturday, March 6, 2010
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In a recent column in the New York Times, Nobel prize-winning economist Paul Krugman explained how conservative efforts to shrink our government have led to the current fiscal crisis.

Starting with the Reagan administration, conservatives have pushed very popular tax cuts rather than cutting down spending on the popular "big government" programs, such as Medicare and Social Security. Everyone liked the tax cuts, especially the rich, who benefited the most. The theory behind the strategy, "starve the beast," was that creating unsustainable budget deficits would necessitate massive spending cuts.

The strategy worked beyond their hopes. According to Krugman, the financial crisis they sought -- and achieved -- has been exacerbated by the Great Recession, as well as Bush-era tax cuts and unfunded wars. Our nation is going broke.

Now that conservatives have set the table for the massive cuts in social welfare programs, they are unwilling to act. While fighting any attempt to provide all Americans the kind of government-backed health insurance seniors enjoy, Republicans are unwilling to tell us just which popular social programs should be cut or eliminated, and they certainly aren't willing to support tax increases.

The Republican strategy, according to Krugman, seems to be to "oppose any responsible action until we are in the midst of a fiscal catastrophe." Then the public will, in disgust with the Democrats' inability to avert the crisis, return Republicans to power.

Frank Flaumenhaft

Hilton Head Island

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