If you want to see how far notions of neo-Keynesianism and government omnipotence have seeped into Washington's conventional wisdom, have a look at today’s Politico lineup. One of the articles, headlined "Improving economy defies Washington, for now," has one of the funnier ledes I've seen in a while:
Washington has tried very hard this year to crush the economy with debt ceiling fights, clumsy budget cuts, a government shutdown and complete legislative gridlock. It does not appear to be working.
Funny, that. It’s almost as though—and talk me down if I sound crazy here—the private sector hums along just fine if we cut federal spending. In fact it seems like—and hold onto your hats for this one—the economy functions better if the government has its hands tied and can’t pass new legislation.