Paul Krugman, "Reagan Was a Keynesian": Reagan Would Roll Over in His Grave

In his latest New York Times op-ed entitled "Reagan Was a Keynesian" (http://www.nytimes.com/2012/06/08/opinion/krugman-reagan-was-a-keynesian.html), Paul Krugman would have us believe that "Reagan, not Obama, was the big spender." Krugman explains:

"I find it especially instructive to look at spending levels three years into each man’s administration — that is, in the first quarter of 1984 in Reagan’s case, and in the first quarter of 2012 in Mr. Obama’s — compared with four years earlier, which in each case more or less corresponds to the start of an economic crisis. Under one president [Reagan], real per capita government spending at that point was 14.4 percent higher than four years previously; under the other [Obama], less than half as much, just 6.4 percent."

However, Krugman proceeds to acknowledge that "the big difference was real per capita spending at the state and local level, which continued to rise under Reagan but has fallen significantly this time around." Or in other words, Krugman would attribute state and local spending to Reagan in order to buttress his claim that Reagan was the real Keynesian. Sorry, but state and local spending cannot be reasonably attributed to a president or federal economic policy.

Moreover, it's June 2012, and state and local governments are broke, can't borrow, and can no longer spend profligately. The comparison between Reagan and Obama is entirely inapt.

Obama is not the real spender? Consider the following data from CBS News (http://www.cbsnews.com/8301-503544_162-57400369-503544/national-debt-has-increased-more-under-obama-than-under-bush/):

"The National Debt has now increased more during President Obama's three years and two months in office than it did during 8 years of the George W. Bush presidency.

The Debt rose $4.899 trillion during the two terms of the Bush presidency. It has now gone up $4.939 trillion since President Obama took office.

. . . .

The National Debt also now exceeds 100% of the nation's Gross Domestic Product, the total value of goods and services.

. . . .

The federal budget sent to Congress last month by Mr. Obama, projects the National Debt will continue to rise as far as the eye can see. The budget shows the Debt hitting $16.3 trillion in 2012, $17.5 trillion in 2013 and $25.9 trillion in 2022.

Federal budget records show the National Debt once topped 121% of GDP at the end of World War II. The Debt that year, 1946, was, by today's standards, a mere $270 billion dollars.

Mr. Obama doesn't mention the National Debt much, though he does want to be seen trying to reduce the annual budget deficit, though it's topped a trillion dollars for four years now.

. . . .

If Mr. Obama wins re-election, and his budget projections prove accurate, the National Debt will top $20 trillion in 2016, the final year of his second term. That would mean the Debt increased by 87 percent, or $9.34 trillion, during his two terms."

Reagan, and not Obama, was the real spender? Yeah, right.