To liberals, instead of cutting spending, the federal government should actually be boosting spending to stimulate the economy, which, in turn, will help shrink deficits over time.
In the past week, it looks as though Democrats have migrated toward the liberal approach. On Wednesday, in an interview with ABC’s George Stephanopoulos, Obama warned against adopting a “crisis mentality” with the debt. (An argument that my column pushed back on.) And on Thursday, Democrats released a budget that actually increases spending on a net basis, a spending cuts are more than offset by undoing the sequester and adding $100 billion in new economic stimulus.