17 November 2008

Kaus on the Obama legacy for Dems

Mickey Kaus wonders about the Time magazine cover:
'If Obama and the Democrats succeed in restoring the economy and stabilizing the government's finances without cutting popular programs or producing social disorder, they'll keep being reelected for decades'?
However, he better not screw it up like FDR did. Thanks to some research from UCLA economists.
The fact that the Depression dragged on for years convinced generations of economists and policy-makers that capitalism could not be trusted to recover from depressions and that significant government intervention was required to achieve good outcomes," Cole said. "Ironically, our work shows that the recovery would have been very rapid had the government not intervened.

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