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Tue Dec 29, 2020, 02:02 PM

2020 Was the Year Reaganism Died [View all]

The government promised to help ó and it did.

By Paul Krugman

Maybe it was the visuals that did it. Itís hard to know what aspects of reality make it into Donald Trumpís ever-shrinking bubble ó and Iím happy to say that after Jan. 20 we wonít have to care about what goes on in his not-at-all beautiful mind ó but itís possible that he became aware of how he looked, playing golf as millions of desperate families lost their unemployment benefits.

Whatever the reason, on Sunday he finally signed an economic relief bill that will, among other things, extend those benefits for a few months. And it wasnít just the unemployed who breathed a sigh of relief. Stock market futures ó which are not a measure of economic success, but still ó rose. Goldman Sachs marked up its forecast of economic growth in 2021.

So this year is closing out with a second demonstration of the lesson we should have learned in the spring: In times of crisis, government aid to people in distress is a good thing, not just for those getting help, but for the nation as a whole. Or to put it a bit differently, 2020 was the year Reaganism died.

What I mean by Reaganism goes beyond voodoo economics, the claim that tax cuts have magical power and can solve all problems. After all, nobody believes in that claim aside from a handful of charlatans and cranks, plus the entire Republican Party.


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