Jonathan Alter and Paul Krugman seemed overjoyed to write about Romney's gaffe. The Club for Growth is, of course, outraged.
Sure enough, Andy Roth, vice president for government affairs at the fiscally conservative Club for Growth, called Romney’s comments “hogwash.” Roth said the statement “confirms yet again that Romney is not a limited government conservative. The idea that balancing the budget would not help the economy is crazy. If we balanced the budget tomorrow on spending cuts alone, it would be fantastic for the economy.”Now, understanding how cuts affects economic growth does not make Romney a Keynesian. It just means that Romney can add and subtract and has taken Macroeconomics 101. Nevertheless, let's consider a few points:
1. Romney has an MBA from Harvard and has spent his life rubbing shoulders with people who understand economics.
2. His chief economic advisers are Glenn Hubbard and Greg Mankiw, both leading economists. Mankiw, for example, is the editor of a collection of papers known as the New Keynesians Economics.
Again, this is not proof that Romney is a Keynesian. It just doesn't seem likely that he isn't though. This does not mean that he isn't conservative. Keynesian economists have consistently argued that governments should increase spending during the bad times and decrease spending during the good times. Politicians since the 1960s have obeyed half of this prescription. Romney, unlike most politicians, actually has decreased government spending during an economic boon. That is why he would be a better President than Obama for the next cycle. We are likely heading toward a full recovery and we need a President who can cut government after the cries for cutting government grow dim.