Has the Wall Street Journal lost its mind?
Read the WSJ article here.
Paul Krugman of the New York Times has asserted that the Great Depression lasted 10 years because the New Deal didn't spend enough. Japan tried to spend its way out of its postbubble malaise in the 1990s but ended up with a mountain of debt and a "lost decade" of little or no economic growth. Nevertheless, the incoming Obama administration is promising close to a trillion dollars in fiscal stimulus, and the Bernanke Fed seems to believe the way to deal with a collapsed bubble is to reinflate it. That of course takes no account of how we got the bubble in the first place.
Also be sure to read my post earlier this week about why when prosperity returns the GOP needs to be the party that is the exact opposite of the Re-New Deal Democrats. When they propose more and more spending, we must propose more and more saving. When they propose running up the national debt, we must propose paying it down. When they propose easy money and loose credit, we must propose responsibility and prudence.