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.
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.
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.