The Washington Monument Strategy

Stephen Colbert used the air traffic delays arising out of the budget sequester as his jumping off point to skewer Rogoff and Reinhart (RR).  Watch the fun below. Obviously, the case for aggressive and immediate fiscal austerity is much tougher to make now.  You can also see Colbert interview UMass Armherst graduate student Thomas Herndon, one of the authors of the paper that debunked RR, here.

However, it seems odd to me (and, apparently, The Wall Street Journal) that a relatively modest budget cut would create a huge air traffic pile-up.  Continue reading