Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
March 28, 2015

We Will Regret Not Spending More in the Recession

Matthew Yglesias follows up on his recession-era calls for federal spending on infrastructure while the economy was depressed and government debt was cheap, noting that “the stronger economy is bringing higher interest rates and thus a systematically higher cost structure.”

“So we underinvested when it was cheap, and now that it’s possible to spend a bit more, that extra money is going to be eaten up by debt service obligations. It’ll probably take several more years before we start making real progress toward where we need to be.”

“And that, of course, is without considering the larger employment and growth implications… To an extent, it’s all in the past now, but it’s been a remarkable tragedy and waste of human potential, and we’ll be paying the price for years to come.”

  • EricFromTheHill

    In 2008, we were told that things would start looking up in 2013-14 (without more stimulus). Now, we’re being told that it will be ten years or so after the start of the recession, so 2017-18, without additional stimulus, that we will really start “moving forward”.

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