Keynesian fools like Paul Krugman will read [Greece] as a cautionary tale against austerity. Wiser heads will see this as a cautionary tale against building an economy based on debt and deficit spending in the first place.
Kevin Williamson, National Review Online, Aug 19:
Krugman & Co. will tell you that’s the result of too much austerity and not enough stimulus spending. But there is another lesson to take away from Greece: When you let the public sector get that big — so big it dominates the economy — then it is nearly impossible to cut back public-sector spending without creating an economic crisis.
Not that we're accusing Williamson of boosting our stuff. We've spoken with him in the past and he seemed to be a good guy. And he's doing really good work at the new Exchequer column (though we suspect with the FHA now imploding he regrets not running with that FHA is the new subprime story we gave him last year). The simpler explanation for the similarities is that Keynesians like Krugman are just such easy targets that a lot of clear-thinking people see exactly the same thing.