Skip to comments.Legends of the Fail (Nobel Laureate Paul Krugman insists Welfare State did not sink Europe)
Posted on 11/11/2011 6:01:41 AM PST by SeekAndFind
This is the way the euro ends not with a bang but with bunga bunga. Not long ago, European leaders were insisting that Greece could and should stay on the euro while paying its debts in full. Now, with Italy falling off a cliff, its hard to see how the euro can survive at all.
But whats the meaning of the eurodebacle? As always happens when disaster strikes, theres a rush by ideologues to claim that the disaster vindicates their views. So its time to start debunking.
First things first: The attempt to create a common European currency was one of those ideas that cut across the usual ideological lines. It was cheered on by American right-wingers, who saw it as the next best thing to a revived gold standard, and by Britains left, which saw it as a big step toward a social-democratic Europe. But it was opposed by British conservatives, who also saw it as a step toward a social-democratic Europe. And it was questioned by American liberals, who worried rightly, Id say (but then I would, wouldnt I?) about what would happen if countries couldnt use monetary and fiscal policy to fight recessions.
So now that the euro project is on the rocks, what lessons should we draw?
Ive been hearing two claims, both false: that Europes woes reflect the failure of welfare states in general, and that Europes crisis makes the case for immediate fiscal austerity in the United States.
The assertion that Europes crisis proves that the welfare state doesnt work comes from many Republicans. For example, Mitt Romney has accused President Obama of taking his inspiration from European socialist democrats and asserted that Europe isnt working in Europe.
(Excerpt) Read more at nytimes.com ...
The liberal “fix” for this endorsed by guys like Krugman is a global U.N. Tax, along with a regime of regulating and equalizing tax rates across all countries. To make things “fair”.
One would think that the Nobel committee, Yale, and Harvard would be concerned about individuals who garner diplomas and Nobel Prizes from those once respected institutions, and then advocate mindless leftist theories. Not so. Zealots like Obama and Krugman represent what those institutions (with exceptions for a few faculty members) stand for today.
To expand their economic theory I hear every-night on MSNBC: American does not have to worry about producing anything but government jobs, because we have a demand problem NOT a supply problem. It's because not enough people want and afford to buy things.
It's not taxes or regulations or employers fear of being demonized and called in front of congress, it's purely lack of demand due to consumer debt, all the rich bankers faults. So we just take some money from them that bthey dont need that they slole anyway, and then print LOTS more and hand it out to those that 'need' it because they will spend it making employers happy with all that demand and we all will have 'jobs' (giving money to illegals works just as well.)
Look, as dumb as this sounds I dont hear many Republicans really explaining why it is dumb.
Bias and the Internet didn’t hurt newspapers either...
Thanks for your replies.
Actually, my undergraduate major was Economics, but when I read Krugman I generally find his conclusions to not be supported. However, Krugman does have a Nobel Prize, he’s a professor at Princeton and my daughter who’s a sophomore in college is using his very expensive textbook for her International Trade class. So, I want to attribute some credibility to Krugman but I rarely find it in what he writes. Also, if what he writes were true, the solutions to current economic problems would be pretty simple.
No nation has ever printed or borrowed its way to prosperity.
The converse, however, is that many a grand society has imploded from too much crushing debt.
Krugman is a laughingstock. I’m surprised he didn’t point to the Cuban success story.
The Nobel committee? The Nobel committee is an eye-rolling laughingstock. It’s got all the credibility of People Magazine’s, “Sexiest Man Alive”. Nobody pays any attention to that thing any more.
This is the continued shaping of history and influencing of the public to promote another term for Obama and fuel his move toward economic collapse that they think will lead to a socialist revolution.
When I see his picture, the old saying about wiping the smirk off someone's face comes to mind:
Really? I always that the Euro (and the EU) was a dangerously bad idea that gave way too much power to France and Germany. What "right wingers" actually thought the Euro was a good idea?
When liberals like Krugman floss, I’d bet the bits dislodged are a mix of kobe beef and their own colon polyps.