Mostly sunny

Too much austerity

EDITOR: I'm afraid the recent report of the Sonoma County Economic Development board may be overly optimistic in view of the national situation, in which the "austerians" have demanded efforts to reduce the deficit now. The administration has little choice but to comply.

Nobel laureate Paul Krugman, who writes biweekly newspaper columns and the recent book "End this Depression Now" has urged us to remember the lessons of the Great Depression, which, after an early partial recovery, fell back into recession when President Franklin Roosevelt tried to balance the budget in 1936 and was not fully overcome until the massive government spending in the buildup prior to World War II.

The huge deficit that ensued was gradually overcome without much pain in the postwar years as the recovered economy provided increased revenue and the modest inflation reduced the debt. Krugman's argument to continue stimulus spending until we recover certainly makes sense (to me) but, unfortunately, seems to be ignored nationally.


Bodega Bay

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