Again we're at that point when Congress has taken itself hostage and is threatening to shoot the country. There's no need for the sequestration. There's no need for any deal. There's certainly no need for austerity of any sort right now. We need the opposite.
Every time we reach this moment there's a sudden realization that contractionary policy is contractionary. Sure there might be better contractionary policy than the haphazard sequestration cuts, but it's still contractionary.
And expansionary policy would be expansionary.
