You can read Professor Mankiw's latest post here. It appears that he is beginning to worry a bit. It's about time.
As I've noted in this space before on more than one occasion, I personally have great regard for Professor Mankiw. In recent weeks, though, I'd begun to wonder why he wasn't coming out much more clearly and forthrightly about the Pork Pool Bi ..., er Stimulus Bill. Looks like he's beginning to see things a bit differently.
You should also read the link in his article, which points to an editorial he wrote before the election of BHO. Interesting to compare the two pieces in tone, as well as content.
I've said it more than a few times in my blog. You cannot borrow what has not yet been produced. BHO's federal spending will be financed with massive borrowing. But since the real stuff hasn't been produced (which also means households haven't saved it yet to be borrowed), households will have to save from their future income to pay for the borrowing. Remember, saving by households is the only real source for borrowing by businesses and governments. If you've forgotten why you can't borrow what hasn't yet been produced, read this post again.
So just when did Americans decide that government bureaucrats and politicians knew better how to spend Americans' income than the people who earned it themselves? Just when did Americans decide that spreading the wealth (to use a phrase popular with BHO) was the way to prosperity? Just when did Americans decide that disregarding the Constitution and its guarantees to private property and private contracts was okay? Evidently, they decided when they elected BHO. Let's see how many of the electorate are happy with their decision by next year.
I hope the force will be with us; it appears that we are going to need it.