"...1937 all over again..."

Krugman doubts the moral virtue of the budgeteers:

... the real motivations for their obsession with austerity lie somewhere else.

In America, many self-described deficit hawks are hypocrites, pure and simple: They’re eager to slash benefits for those in need, but their concerns about red ink vanish when it comes to tax breaks for the wealthy. Thus, Senator Ben Nelson, who sanctimoniously declared that we can’t afford $77 billion in aid to the unemployed, was instrumental in passing the first Bush tax cut, which cost a cool $1.3 trillion...

Austerity is a tool for social control. It's Robert Bork's "only way" to enforce his social worldview on the rest of the world. Of course, that moralistic worldview itself is a smokescreen for the very rich and powerful to retain their wealth and power with a minimal effort.