Never mind

…Suppose the Democrats can free up some money…Should they use the reclaimed revenue to reduce the deficit, or spend it on other things?

That is Paul Krugman, and the answer is that Rubinomics is dead and they should spend the money.  Deficit reduction is for "the long run."  Even from Krugman’s point of view, the use of "they" seems premature with a Republican President and a hard-to-elect Democratic frontrunner candidate in the wings.  More economically, I am pleased that the forthcoming fiscal destruction of the United States has been averted, or at least held at bay for some time.  It took a mere mid-term election; cuts in spending or tax hikes were not necessary, quite the contrary.

Brad Delong has more.  Mark Thoma has more.  I am sure others have more too, time to walk around Brazil.