Today, the positions are reversed. The big Republican idea of 2010 was Congressman Paul Ryan’s budget road map, which offered a serious plan to address Social Security and Medicare shortfalls. But what’s the most striking fact about Ryan’s budget plan is precisely that it is a budget plan — it’s a document concerned with government finance, not the crisis in the economy. How will balancing the budget in the 2020s and 2030s, which is when the plan has most of its impact, create jobs and save homes in the here and now? This was the kind of problem that preoccupied the supply-siders of the 1980s and should again preoccupy Republicans today.

If Republicans reject Obama-style fiscal stimulus, what do they advocate instead? A monetarist might recommend more money creation, even at the risk of inflation: “quantitative easing,” as it’s called. Yet leading voices in the Republican Party have convinced themselves that the country is on the verge of hyperinflation — a Weimar moment, says Glenn Beck. But if fiscal stimulus leads to socialism, and quantitative easing leads to Nazism, what on earth are we supposed to do? Cut the budget? But we won’t do that either! On Sean Hannity’s radio show, the Republican House leader John Boehner announced just before the election that one of his first priorities would be the repeal of the Obama Medicare cuts.

Lesson 4: Even from a conservative point of view, the welfare state is not all bad. G. K. Chesterton observed that you should never take a fence down until you understand why it had been put up. We should remember why the immediate post-Depression generations created so many social-welfare programs. They were not motivated only — or even primarily — by “compassion.” They were motivated as well by the desire for stability.

Social Security, unemployment insurance and other benefits were designed as anti-Depression defenses, “automatic stabilizers” as economists called them. When people lost their jobs, their incomes did not drop by 100 percent, but by 30 percent or 40 percent: they could continue to pay rent, buy food and sustain society’s overall level of demand for goods and services. State pensions created a segment of society whose primary incomes remained stable regardless of economic conditions. The growth of the higher-education sector and of health care had a similar effect.

This shift to a more welfare-oriented economy helps explain why business cycles in the second half of the 20th century were so much less volatile than they were in the 19th century. And fortunately enough, this shift put a floor under the economic collapse of 2008-09. Retirees who lost their savings had to cut back painfully. But at least their Social Security checks continued to arrive. People who lost their jobs might lose their homes. But they continued to buy food and clothing. And the industries that sold those basic necessities continued to function — unlike in 1929-33, when the whole economy collapsed upon itself.

Those who denounce unemployment insurance as an invitation to idleness in an economy where there are at least five job seekers for every available job are not just hardening their hearts against distress. They are rejecting the teachings of Milton Friedman, who emphasized the value of automatic stabilizers fully as much as John Maynard Keynes ever did. Conservatives should want a smaller welfare state than liberals in order to uphold maximum feasible individual liberty and responsibility. But the conservative ideal is not the abolition of the modern welfare state, and we should be careful of speaking in ways that communicate a more radical social ideal than that which we actually uphold and intend.