Targets for Future Spending Cuts

There is a time to spend and a time to cut and we are now in an age of austerity. Even since Standard & Poor’s downgraded the U.S.’s “AAA” credit rating earlier this month, some Keynesians still favor more spending. They say the threat that the economy will dip back into recession calls for more public outlay. But Congress has made clear it won’t respond by spending more money and that is probably a good thing.