Let's see if I've got this straight: George W. Bush, irrefutably, expands the size of both the federal government and the federal government's regulations (including financial regulations) more than any president since before the Designated Hitter rule was adopted. He and his party are bounced out of office in 2008 by a Democratic party which, even though the president campaigned (after the financial crisis hit) on a "net spending cut," nevertheless telegraphed their left-of-Bill-Clinton economics well in advance of taking office. They promptly boost government spending and debt to levels not seen since World War II, throwing corporate welfare at such wholly non-essential companies as American Axle. Krugman's conlusion?
Washington, it seems, is still ruled by Reaganism — by an ideology that says government intervention is always bad, and leaving the private sector to its own devices is always good.
It really is an ugly thing, isn't it, when people on the winning team don't get everything they want?