Paul Krugman: Deficit Derangement Syndrome: "This Dylan Matthews piece on the evils people perceive from deficits, and why they’re almost all wrong, is a must-read…. I wish he’d made the no-crowding-out point in terms of the state of the economy, not just actual interest rates. But these are minor points, and the overall thrust of the piece is excellent. One thing I was really glad he took on was the Reinhart-Rogoff 90 percent = disaster stuff. He lays out the right critique — mainly, poorly performing economies tend to have high debt…. The main exceptions are wars and their aftermath — and those can be problematic too…. [T]his whole deficit fever has been based on bad logic and weak evidence. I could have told you that from the beginning, and actually I did. But it’s good to see the word getting out more widely."
Ezra Klein: Dave Camp just made Paul Ryan’s tax-reform plan impossible: "The joint Max Baucus/Dave Camp op-ed on tax reform…. [T]he detailed tax reform instructions in the budget do not require House Ways and Means Chairman Dave Camp to maintain progressivity. So that looked to be the trick: Republicans would pay for their tax cuts by shifting the burden down toward the middle class. The Camp/Baucus op-ed, however, explicitly disavows that escape hatch…. This seems like a big deal. It would appear to make the tax reform plan in the Ryan budget utterly impossible."
Tony Judt: The Wrecking Ball of Innovation | Joe Weisenthal: French Borrowing Costs Are Plummeting/a> | Mark Thoma: Let the Punishment Fit the Crime of the Recession | Aaron Carroll: An update on Vermont’s single payer system |