Wednesday, February 13, 2013

Here it comes again

After the State of the Union speech, the response given by Mr. Rubio contained the following passage:

This idea – that our problems were caused by a government that was too small – it’s just not true. In fact, a major cause of our recent downturn was a housing crisis created by reckless government policies.

Now, Mr. Rubio is, by all appearances, a serious and thoughtful person.  But here he is propagating one of the most consistent myths of the Great Recession: that the government caused it.  As Mark Thoma (see here) and Paul Krugman (see here) have shown, this myth has been refuted about as completely as can be done.  But here it is again.  And in a response to a State of the Union address, no less.  You don't think so?  See this summary (here) by Mike Konczal.

This myth is the poster child for a zombie argument.

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