Krugman: But why have Republican demands so consistently had a depressing effect on the economy?

http://www.nytimes.com/2013/10/18/opinion/krugman-the-damage-done.html?_r=1&hp=&adxnnl=1&adxnnlx=1382115916-4n9PD/KnRZZRBsSzES5IQg&

Part of the answer is that the party remains determined to wage top-down class warfare in an economy where such warfare is particularly destructive. Slashing benefits to the unemployed because you think they have it too easy is cruel even in normal times, but it has the side effect of destroying jobs when the economy is already depressed. Defending tax cuts for the wealthy while happily scrapping tax cuts for ordinary workers means redistributing money from people likely to spend it to people who are likely to sit on it.

We should also acknowledge the power of bad ideas. Back in 2011, triumphant Republicans eagerly adopted the concept, already popular in Europe, of “expansionary austerity” — the notion that cutting spending would actually boost the economy by increasing confidence. Experience since then has thoroughly refuted this concept: Across the advanced world, big spending cuts have been associated with deeper slumps. In fact, the International Monetary Fund eventually issued what amounted to a mea culpa, admitting that it greatly underestimated the harm that spending cuts inflict. As you may have noticed, however, today’s Republicans aren’t big on revising their views in the face of contrary evidence.

Are all the economy’s problems the G.O.P.’s fault? Of course not. President Obama didn’t take a strong enough stand against spending cuts, and the Federal Reserve could have done more to support growth. But most of the blame for the wrong turn we took on economic policy, nonetheless, rests with the extremists and extortionists controlling the House.

Things could have been even worse. This week, we managed to avoid driving off a cliff. But we’re still on the road to nowhere.