Brilliant

By DeLong.

Think of that when you consider this: The U.S. unemployment rate is stubbornly high, yet aid from a federal government that can borrow at unbelievably good terms could allow states to maintain their levels of public employment, and those public workers would then spend their incomes and so boost the number of private-sector jobs as well. But the voters are against that. No, they say. We have lost our jobs. It is only fair that those who work for the government lose their jobs as well — never mind that each public-sector job lost triggers the destruction of yet another private-sector job. It’s the underlying logic that has led to a wave of austerity across Europe that is now headed for America’s shores. And it’s the same logic that says, “It is only fair that homeowners lose their money” — never mind that everyone’s home prices will suffer. What does not kill me makes me stronger.

Because some are unemployed, unemployment is good — we need more of it. Because some have lost their wealth, wealth destruction is good — we need more of it. That is a psychology that Friedrich Nietzsche would have understood all too well. For, as he put it, “If you gaze long into an abyss, the abyss will also gaze into you.”