This is something I've long wondered about myself. This conundrum accelerated me to old-man-yelling-at-the-radio stage yesterday listening to the Sunday talk shows while out doing errands.
Bernstein has his potential answers here. In abbreviated form, they are:
1. People believe the Recovery Act didn’t work and have turned anti-Keynesian.
2. Deep misunderstanding of the role of deficits and debt in contemporary economies.
3. Faux deficit concern as a tool to shrink government.
4. Fiscal policy we can (theoretically) control, but no one really knows how to generate job creation.
Number 4 is closely related to the "we have to do something!" reaction (do we? really? maybe we don't have to do something about the deficit but it's worth doing something about jobs).
John Blundell (1952-2014)
16 minutes ago