Paul Krugman’s article on Ronald Reagan
Posted by JimPaul Krugman writes on economic affairs for The New York Times and this week he wrote an interesting piece on our 40th President. It is topical because it relates to the current budget crisis in California. Without getting into too many specifics, Mr. Krugman’s thesis is that under Mr. Reagan the nation steered away from fiscal responsibility. Citing the explosion of the federal deficit and the dramatic decrease in personal savings, he argues that the era of getting something for nothing started in earnest in 1981.
Today in California the state must make 25 billion or so in immediate cuts to avoid running out of money next month. Nowhere is the debate is the dreaded “T” word mentioned. I suppose, at 9.3%, the income tax rate is fairly high. The problem is that, going back to Mr. Krugman’s argument, the citizenry has been conditioned to always want something for nothing. We want services but do not want to pay for them.
The drama in Sacramento has got my attention. Ordinarily I avoid state politics as dull but today there is a real story being played out. How this gets resolved will impact our state dramatically over the next generation.
