Skip to comments.Paul Krugman: The President Surrenders
Posted on 07/31/2011 9:25:53 PM PDT by 2ndDivisionVet
A deal to raise the federal debt ceiling is in the works. If it goes through, many commentators will declare that disaster was avoided. But they will be wrong.
For the deal itself, given the available information, is a disaster, and not just for President Obama and his party. It will damage an already depressed economy; it will probably make Americas long-run deficit problem worse, not better; and most important, by demonstrating that raw extortion works and carries no political cost, it will take America a long way down the road to banana-republic status.
Start with the economics. We currently have a deeply depressed economy. We will almost certainly continue to have a depressed economy all through next year. And we will probably have a depressed economy through 2013 as well, if not beyond.
The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further. Pay no attention to those who invoke the confidence fairy, claiming that tough action on the budget will reassure businesses and consumers, leading them to spend more. It doesnt work that way, a fact confirmed by many studies of the historical record.
Indeed, slashing spending while the economy is depressed wont even help the budget situation much, and might well make it worse.....
(Excerpt) Read more at nytimes.com ...
I couldn’t do enough drugs to believe what the Enron Shill says.
it’s a sham designed to get the u.s. congress to vote for the deal.
I was thinking just the opposite. I wonder if a lot of dems won’t not vote against it. If they do and we go past Aug 2 the press will cover for them.
“The worst thing you can do in these circumstances is slash government spending, since that will depress the economy even further”
Where has it worked, Douche?
who cares what this morally corrupted vile little man says or thinks ? Send him to Afghanistan and have him help find IED’s on village pathways Helmand . Smug lil POS
The most interesting part of the article is what Krugman did not assert. He never stated, as far as I can tell, that there should have been a tax increase. Also, boy genius stated that now is not the time to cut spending because we are in a poor economy, AND he stated that this bill does not solve our debt problem.
He should crack open a book on economics, not open an economic crack book.
Well if Krugman doesn’t like it there might be some good stuff in it?
It’s worked in a drug - induced hallucination. That’s good enough for a liberal/s;)
wow, this column is evidence that there is no amount of brain destructive drug abuse that is an absolute disqualification to receiving a Nobel Prize!
tub o' goo
“We currently have a deeply depressed economy.”
Wait, what about all those unexpected greenshoots popping up everywhere during recovery Summer, Fall, Winter, Spring, Summer?
“Is he obtuse or insane? “
Nope, standard operating procedure when they sucker the Republican leadership. See how the Dems actually VOTE on this agreement...then you’ll see what I mean.
Notice the last couple of sentences? Usually the last few sentences are the windup to the message and the last thing you carry with you about the point of the article.
However, Krugman chose to end it with an attack on our whole political system. Trying to point out an imperfection, it’s not working, it needs to be changed. Communism, anybody?
This is a pattern I’ve seen in several proggie articles lately. They rant and rail and then end up with the ‘we have a flawed government system’ KRAP. And the many will believe it. Even though it worked just fine while the proggie commies spent $6 TRILLION in the last four years.
I'm pretty sure Krugman is talking about what happened when the fed stopped pumping dollars to Captain Hook.
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