Comments on: The Threat to Muddle Through http://www.ritholtz.com/blog/2010/03/the-threat-to-muddle-through/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 19:33:40 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: sparrowsfall http://www.ritholtz.com/blog/2010/03/the-threat-to-muddle-through/comment-page-1/#comment-263823 sparrowsfall Sat, 20 Mar 2010 23:13:44 +0000 http://www.ritholtz.com/blog/?p=54634#comment-263823 "in good times government would run surpluses. It seems that we forgot that part." That's true if "we" means Republicans since 1980. Because fed debt/GDP went down steadily post war, under dems and pubs, until 1981. Fed debt/GDP went up steadily post 1980--except when a democrat was in charge. A thirty year run of unending Keynesian stimulus gone wild--with one brief hiatus. But all that borrowed money definitely bought one thing: votes. Voila: The Reaganomics Strategy. “in good times government would run surpluses. It seems that we forgot that part.”

That’s true if “we” means Republicans since 1980.

Because fed debt/GDP went down steadily post war, under dems and pubs, until 1981.

Fed debt/GDP went up steadily post 1980–except when a democrat was in charge.

A thirty year run of unending Keynesian stimulus gone wild–with one brief hiatus.

But all that borrowed money definitely bought one thing: votes.

Voila: The Reaganomics Strategy.

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