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The Bleeding Cure (Paul Krugman says we're killing our economy with austerity)
New York Slimes ^ | 09/19/2011 | Paul Krugman

Posted on 09/19/2011 1:18:11 PM PDT by SeekAndFind

Doctors used to believe that by draining a patient’s blood they could purge the evil “humors” that were thought to cause disease. In reality, of course, all their bloodletting did was make the patient weaker, and more likely to succumb.

Fortunately, physicians no longer believe that bleeding the sick will make them healthy. Unfortunately, many of the makers of economic policy still do. And economic bloodletting isn’t just inflicting vast pain; it’s starting to undermine our long-run growth prospects.

Some background: For the past year and a half, policy discourse in both Europe and the United States has been dominated by calls for fiscal austerity. By slashing spending and reducing deficits, we were told, nations could restore confidence and drive economic revival.

And the austerity has been real. In Europe, troubled nations like Greece and Ireland have imposed savage cuts, even as stronger nations have imposed milder austerity programs of their own. In the United States, the modest federal stimulus of 2009 has faded out, while state and local governments have slashed their budgets, so that over all we’ve had a de facto move toward austerity not so different from Europe’s.

Strange to say, however, confidence hasn’t surged. Somehow, businesses and consumers seem much more concerned about the lack of customers and jobs, respectively, than they are reassured by the fiscal righteousness of their governments. And growth seems to be stalling, while unemployment remains disastrously high on both sides of the Atlantic.

But, say apologists for the bad results so far, shouldn’t we be focused on the long run rather than short-run pain? Actually, no: the economy needs real help now, not hypothetical payoffs a decade from now.

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Culture/Society; News/Current Events
KEYWORDS: austerity; bleedingcure; krugman; paulkrugman

1 posted on 09/19/2011 1:18:21 PM PDT by SeekAndFind
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To: SeekAndFind

Funny, I was just thinking the other day that the people defending Keynesian economics were a lot like those defending blood-letting. Never mind that nothing we said would happen did happen, imagine how bad it would have been if we didn’t.


2 posted on 09/19/2011 1:23:25 PM PDT by hometoroost (Frodo lives!)
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To: SeekAndFind

Funny, I don’t see anything on the page.
It is as if the author was dead to me.
Anyone else experiencing the same thing?


3 posted on 09/19/2011 1:23:31 PM PDT by Notwithstanding
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To: SeekAndFind
>> In the United States, the modest federal stimulus of 2009 has faded out found it's way into the pockets of Obama investors and into hidden accounts in overseas banks and there's another election coming so they need more of your children's money!
4 posted on 09/19/2011 1:24:45 PM PDT by Bryanw92 (The solution to fix Congress: Nuke em from orbit. It's the only way to be sure!)
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To: SeekAndFind

I can’t see any words on the page, but I keep hearing faint cries of “Bleed the rich!”


5 posted on 09/19/2011 1:25:40 PM PDT by Notwithstanding
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To: SeekAndFind

I wish someone would do to krugman what obama is doing to the rest of us.

LLS


6 posted on 09/19/2011 1:26:32 PM PDT by LibLieSlayer (Is the person that you support a Crony Capitalist... A.K.A. CRAPITALIST?)
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To: SeekAndFind

we should ALL go out and blow money we don’t have just like big brother

Funny, I don’t see any austerity except individual austerity forced on people

I do see a boatload of people who want to work but no one hiring because of the uncertainty of the environment. Noone can plan


7 posted on 09/19/2011 1:28:16 PM PDT by yldstrk (My heroes have always been cowboys)
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To: SeekAndFind

I agree austerity never works. But Krugman considers these mythical “cuts” to be austerity. Hardly, when you are running 1.5 trillion dollar annual deficits that is austerity. You are taking money from the private productive sector and giving it to the public unproductive sector. That is why Europe is in a mess, their generous welfare states have run into the big wall of demographics.

To rid ourselves of Krugman supported austerity you turn the total economic engine over to the people in the productive sector who now how to produce economic growth and jobs. You don’t raise taxes, you lower them to 1984 levels, you get rid of the capital gains tax, and abolish every regulation produced since 1973 and see how much the economy grows and how many real jobs are produced.

We tried Krugman’s way, it failed. Now lets try again the way we know works.


8 posted on 09/19/2011 1:28:58 PM PDT by Patrick1 ("The problem with Internet quotations is that many are not genuine." - Abraham Lincoln)
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To: Notwithstanding

RE: Funny, I don’t see anything on the page.

CLICK THIS LINK :

http://www.nytimes.com/2011/09/19/opinion/economic-bleeding-cure.html?_r=1&partner=rssnyt&emc=rss


9 posted on 09/19/2011 1:32:38 PM PDT by SeekAndFind (u)
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To: SeekAndFind

Has this guy ever heard of Japan?


10 posted on 09/19/2011 1:32:38 PM PDT by nickcarraway
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To: Patrick1

RE: We tried Krugman’s way, it failed. Now lets try again the way we know works.

It is Krugman’s contention that even the first stimulus and QE’s are NOT ENOUGH. We need more of it.


11 posted on 09/19/2011 1:36:28 PM PDT by SeekAndFind (u)
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To: SeekAndFind
For the time being we need more, not less, government spending...

And of course you'll be spending our money.

Bill O'Reilly kept yelling at Krugman, "But the people can't pay anymore taxes...they don't have the money!"

Krugman stared blankly each of the three times OR said it.

He reminds me of the Sheriff of Notingham.

12 posted on 09/19/2011 1:37:52 PM PDT by Rudder (The Main Stream Media is Our Enemy---get used to it.)
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To: SeekAndFind

Forget leeches, what we really need are cattle prods to zap the hineys of all those on the entitlement teats to get off their butts and work for a living rather than “leeching” off the system. This applies to businesses that are on the government teat too.


13 posted on 09/19/2011 1:38:39 PM PDT by GraceG
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To: SeekAndFind

Krugman is never right about economics, so why does anyone think he might be right about medicine?

Where does that ancient remedy of bloodletting come in?

The discovery suggests that bloodletting, done early enough, may have slowed staph infections by starving germs of iron, National Institutes of Health iron specialist Tracy Rouault wrote in a review of Skaar’s research.

http://www.cbsnews.com/stories/2004/09/10/health/main642559.shtml?tag=untagged

The less blood that’s available, the harder it is for the bacterium to scrounge up enough heme to thrive.

“Bloodletting in the preantibiotic era may have been an effective mechanism for starving bacterial pathogens of iron and slowing bacterial growth,” writes Rouault.

http://men.webmd.com/news/20040910/bloodlettings-benefits


14 posted on 09/19/2011 1:39:56 PM PDT by Raycpa
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To: SeekAndFind

Better analogy is a tolerable but growing tumor which is left alone due to potential inconvenience/discomfort to the patient, until it gets so big removal is vital to survival, which is not assured due to the severity of surgery required.

“Bleeding” patients was a manifestation of medical ignorance.
Modern surgery is not.

The $1.5T deficit MUST be removed. NOW. Yeah, it will hurt, but economic death is not a desirable alternative. (I’ve had the option of painful heart surgery vs. drop dead. Time for the surgeon!)


15 posted on 09/19/2011 1:40:18 PM PDT by ctdonath2 ($1 meals: http://abuckaplate.blogspot.com/)
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To: Rudder

RE: Bill O’Reilly kept yelling at Krugman, “But the people can’t pay anymore taxes...they don’t have the money!”

Krugman stared blankly each of the three times OR said it.

_________________________________________________________________________

I wonder why Krugman did not respond with -— oh yes they do — we have hundreds of thousands of millionaires in this country who don’t pay their fair share.

And I wonder what BOR’s response would be...

Just fantasizing my friend.


16 posted on 09/19/2011 1:40:18 PM PDT by SeekAndFind (u)
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To: SeekAndFind
Krugman makes the fundamental mistake of conflating "The federal government of the United States of America" with "The United States of America."

The "austerity" he so fears is government austerity, not austerity of the whole country.

The analogy isn't to the medieval practice of bleeding, unless what you're talking about is the government bleeding money from the entire country in order to "cure" its ills. THAT won't work, and will just wind up killing the "patient" (with kindness, perhaps, but killing it nonetheless.)

The better analogy is to, perhaps, a liver that has developed a large, cancerous tumor, now grown large enough to seriously affect the "quality of life" of the patient.

"Bleeding" a tumor like that does no good at all--it will just kill the patient that much quicker, actually.

What you have to do is cut the tumor out, in an attempt to restore the proper function of the liver. Humans need a liver. We need a government. But we have a government that has grown too large and is now beginning to consume the entire country.

It needs to be cut back down to size.

17 posted on 09/19/2011 1:45:27 PM PDT by filbert (More filbert at http://www.medary.com--GAME ON!!!)
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To: SeekAndFind

We’re killing our economy through excessive taxation and regulation. ESPECIALLY regulations.
We need to roll back regulations and taxes until the engine starts again. Then keep them a a low level.


18 posted on 09/19/2011 1:45:44 PM PDT by Little Ray (FOR the best Conservative in the Primary; AGAINST Obama in the General.)
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To: SeekAndFind

I thought bleeding = spending as in the common expression ‘bleeding red ink’. When someone is referred to as a leech, that means that he is sucking off someone, as in draining their wealth. A leech is in fact a type of parasite.
I hate this POS. Paul Krugman, hia brain consists of two spirochetes held together by a neuron. Let’s leech this guy.


19 posted on 09/19/2011 1:48:06 PM PDT by grumpygresh (Democrats delenda est)
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To: SeekAndFind

As if the government has approached anything that could remotely be called “austere”. Laughable.


20 posted on 09/19/2011 1:49:29 PM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: Notwithstanding; SeekAndFind; nutmeg; RaceBannon

D-E-A-D! From the vile apologist for the 911 murderers, Krugman the dissolute hobo is out on his corner, hustling passers by...”Keep your eye on the pea. It’s under the walnut shell...tax, borrow, spend....repeat...tax, borrow, spend...repeat.” It’s the old con, the “Keynesian shell game.”

We’ve got a president driving around in brand new multimillion dollar, deluxe, Darth Vader buses fabricated in...wait for it...Canada! We’ve got a First Lady who is rightly criticized for spending in excess of $10 million in public funds on vacation this year alone. The White House is concerned over the “optics” of the blossoming Solyndra boondoggle, but not at all worried over the squandering of over a half billion dollars (can they spell STIMULUS?). Yet, Herr Krugman still writes...”fiscal austerity is reducing our future prospects...For the time being we need more, not less, government spending” Austerity? More spending? Really?


21 posted on 09/19/2011 1:51:49 PM PDT by CharlesThe Hammer
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To: SeekAndFind

Krugman is nuts. That’s all there is to it.

He and his Keynesian economics have bled us dry, and yet he wants to let more blood.

He’s a quack.


22 posted on 09/19/2011 1:53:45 PM PDT by Rocky (REPEAL IT!)
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To: ctdonath2

Great minds think alike . . . I was distracted a couple of times while writing my post before hitting the button, and you beat me to the punch . . .


23 posted on 09/19/2011 1:55:05 PM PDT by filbert (More filbert at http://www.medary.com--GAME ON!!!)
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To: SeekAndFind

24 posted on 09/19/2011 1:57:45 PM PDT by Baynative (The penalty for not participating in politics is you will be governed by your inferiors.)
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To: SeekAndFind

The proper analogy is that bleeding the patient is like squeezing $1.5 trillion of additional taxes out of a private sector that is already pale, weak and anemic.

Taking that $1.5 trillion out of the private sector to support high and oftentimes wasteful government spending would leave the patient in intensive care.


25 posted on 09/19/2011 2:03:51 PM PDT by Meet the New Boss (Obama has created more jobs in soup kitchens than anyone since Jimmy Carter)
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To: SeekAndFind
"physicians no longer believe that bleeding the sick will make them healthy"

It's apparently still an effective practice. Just about the first things health care workers do is to let some blood out of you.

26 posted on 09/19/2011 2:05:56 PM PDT by Paladin2
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To: Patrick1
I disagree. Austerity works every time it is really tried.

It worked in 1920, the last time it was tried here.

You do not get out of debt by getting another credit card. You can by robbing a bank, but the government hates competition.

The “bleeding cure” is correctly associated with excessive regulation and taxation. Government regulation and taxation are bleeding the economy dry.

27 posted on 09/19/2011 2:08:20 PM PDT by fireforeffect (A kind word and a 2x4, gets you more than just a kind word.)
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To: SeekAndFind

Where is this austerity he’s been talking about? Am I missing something?


28 posted on 09/19/2011 2:16:33 PM PDT by Right Wing Assault (Dick Obama is more inexperienced now than he was before he was elected.)
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To: SeekAndFind

29 posted on 09/19/2011 3:04:51 PM PDT by newzjunkey (Will racist demagogue Andre Carson be censured by the House?)
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To: SeekAndFind

It’s amazing the number of different ways he can write the same BS over and over.


30 posted on 09/19/2011 3:17:22 PM PDT by radioone ("2012 can't come soon enough")
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To: SeekAndFind

This fool can’t even come up with a decent analogy. A person with lowered blood levels will be weak. A person without blood is dead. A country with lower debt levels is strong, and a country with no debt is great.

Mortgaging the future to distribute goodies today is not the lifeblood of an economy, idiot!


31 posted on 09/19/2011 3:32:22 PM PDT by SaxxonWoods (.....The days are long but the years are short.....)
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To: SeekAndFind

We’re killing our economy with government. Just like the rest of the world.


32 posted on 09/19/2011 3:35:22 PM PDT by Mr. Jeeves ( "The right to offend is far more important than any right not to be offended." - Rowan Atkinson)
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To: SeekAndFind

It was sarcasm - Krughead is dead to me after his jackassonian 9/11 editorial screed.


33 posted on 09/20/2011 10:56:02 AM PDT by Notwithstanding
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