Is Obama Repeating the Mistake of '37?

With the announcement that Obama plans to freeze non-defense discretionary spending in his new budget, I can safely predict a blizzard of liberal attacks drawing a comparison to 1937, when Franklin Roosevelt sharply tightened fiscal policy and brought on an economic downturn. In anticipation of something like this, I wrote a Forbes column two weeks ago on this very topic, which I reprint below.

 

The largest effort to reduce the growth in healthcare spending by containing cost increases is currently on the table in the form of current Health Care Reform bills in Congress.

100% of the supposedly deficit hawk Republicans (who nonetheless ran up the greatest deficts in history) have blocked voted against this moderately conservative legislation that increases competition and reduces deficit spending by almost $90 billion a year.

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