The Austerity Delusion: Why a Bad Idea Won Over the West. "Austerity is a seductive idea because of the simplicity of its core claim -- that you can’t cure debt with more debt. This is true as far as it goes, but it does not go far enough. Three less obvious factors undermine the simple argument that countries in the red need to stop spending. The first factor is distributional, since the effects of austerity are felt differently across different levels of society. The second factor is compositional; everybody cannot cut their way to growth at the same time. The third factor is logical; the notion that slashing government spending boosts investor confidence does not stand up to scrutiny."
"...Charles Marohn and his colleagues at the Minnesota-based nonprofit Strong Towns have made a very compelling case that suburban sprawl is basically a Ponzi scheme, in which municipalities expand infrastructure hoping to attract new taxpayers that can pay off the mounting costs associated with the last infrastructure expansion, over and over." Building resilient cities and towns with fiscal conservatism. [more inside]
A four-year-old girl (YouTube 1:26) is interviewed about her views of various hypothetical budgetary allocations. It is called "A SOTU Response," but it isn't really directly related to the SOTU. Via Plastic.
That didn't take long. Thanks to Paul Krugman; it's high time someone disagreed with Bush's wrongheaded fiscal ideas. Bush is going back to fuzzy math to justify another tax cut.