May 31, 2011

NIALL FERGUSON: Austerity Works: In bemoaning the pain of fiscal responsibility, the Democrats show they still haven’t learned the lessons of Europe. “The real lessons for the United States are clear. Those who run up debt in good times can borrow only so much more when a recession strikes. And heavily indebted governments postpone fiscal stabilization at their peril. If you wait to reform until the bond market calls time, you are—to use a technical term from economics—screwed.”