Fiscal Austerity and “Third World America”

By Simon Johnson My testimony to the Senate Budget Committee on these issues is available here: http://baselinescenario.com/2010/08/05/its-hard-to-take-the-fiscal-hawks-seriously/. There are three main views of the financial crisis and recession of 2008-9. In the first two views, the debate over the fiscal deficit is quite separate from what happened in the crisis. …