Is Paul Krugman Insane?

[I AM NOT THAT GUY 5,715]

From ABC News Sunday

[Usui Takumi 1,562]

I would have agreed if the statement had been slightly smaller so to speak. I fear that significant cuts will probably slow the economy, denting revenue and ultimately contributing to a larger deficit. However, spending more now and doing nothing for 9 years would be catastrophic.

[one...two...tree 2,762]

I would have agreed if the statement had been slightly smaller so to speak. I fear that significant cuts will probably slow the economy, denting revenue and ultimately contributing to a larger deficit. However, spending more now and doing nothing for 9 years would be catastrophic.

Yep. That is something that a lot of Right Wingers can't seem to grasp. Across the country, all the states with their own ballooning deficits know the main cause - reduced tax revenues. However, this really works right into the RWN's idea of 'starving the beast.' Rather than looking to raise taxes on the wealthy, they'd be perfectly happy to see all forms of government be dismantled.

Edited August 1, 2011 by DFH

[Mr. Big Dog 10,747]

Yep. That is something that a lot of Right Wingers can't seem to grasp.

Which is funny because you can go from country to country that has tried this approach and see what austerity in hard economic times does. Growing the economy and creating jobs isn't among those things.

Hell, you can even see it right here at home. Overall job growth has been hampered by eliminating public payrolls. The picture has been the same month after month - private sector adds, public sector cuts resulting in very modest overall employment growth. But hey, since when have facts influenced faith? Besides, sluggish job growth and the resulting weak demand and the resulting slow recovery is but the best thing the GOP can imagine to further their #1 goal. Which, of course, is neither job growth nor economic growth. Nor is it debt or deficits. But we all know that. They've made it very clear in no uncertain terms.

Edited August 1, 2011 by Mr. Big Dog

[I AM NOT THAT GUY 5,715]

So, you all think you can tax and borrow your way into prosperity.

Feta, anyone?

Edited August 1, 2011 by Crusty Old Perv

[Mr. Big Dog 10,747]

So, you all think you can tax and borrow your way into prosperity.

Last I checked, it worked quite well for the US following the Great Depression.

[luckytxn 2,264]

Last I checked, it worked quite well for the US following the Great Depression.

Well we could start a World War and get out of this I guess. It is what got us out of the great depression. The spending and Socialism pretty much destroyed any chance of recovery and made things worse and deepened the depression. Who you think we should start with? China? Russia? Of course there can be no WWIII without Europe so we need to get them on board.

[^_^ 5,021]

Well we could start a World War and get out of this I guess. It is what got us out of the great depression. The spending and Socialism pretty much destroyed any chance of recovery and made things worse and deepened the depression. Who you think we should start with? China? Russia? Of course there can be no WWIII without Europe so we need to get them on board.

Europe has been at it twice, cut them a break this time. Maybe the Chinese and the Mongolians and the Indians and the Filipinos can play with us instead. Chavez can be the bad guy.

[luckytxn 2,264]

Really hard to believe that there are people stupid enough to agree to spend even more now and wait to make cuts. Yet I see some did agree.

[luckytxn 2,264]

Europe has been at it twice, cut them a break this time. Maybe the Chinese and the Mongolians and the Indians and the Filipinos can play with us instead. Chavez can be the bad guy.

Well they can be the secondary theater again this time. Europe helped us out so much getting us out of the depression they need to play again.

[^_^ 5,021]

Well they can be the secondary theater again this time. Europe helped us out so much getting us out of the depression they need to play again.

Poor Europeans can never catch a break.

I guess there is no rest for the weary.

[luckytxn 2,264]

Poor Europeans can never catch a break.

I guess there is no rest for the weary.

Hey we spent a lot of money to ensure their survival they can at the very least let us use their countries as battlefields again.

[Mr. Big Dog 10,747]

Well we could start a World War and get out of this I guess. It is what got us out of the great depression.

Why do you have to borrow money to do nothing but blow it up? I'd imagine if you'd use it as an investment into your own infrastructure and invest it into tomorrow's workforce, the results would be much better than what WWII has done for the country to get out of the Great Depression. Surely the return on modern infrastructure is bigger than the return of some tanks and bombs that you ship overseas to get fcuked up.

But you know, if war machinery that is to be destroyed is what it takes, then fine. Build tanks, take them out to Nevada and blow them up. And then do it again. Point is, if you acknowledge that the debt and tax financed manufacture of war machinery was able to lift the country out of the Great Depression, then you's also have to admit that paying people with borrowed and taxed money to dig holes and then pay with such funds people to fill them back in would lift the country out of a recession. The tank you build gets eventually blown up without producing any lasting economic benefit. The hole gets filled without doing much for the economy either. If the former is a working strategy, the latter has to be as well.

Now what?

[luckytxn 2,264]

Why do you have to borrow money to do nothing but blow it up? I'd imagine if you'd use it as an investment into your own infrastructure and invest it into tomorrow's workforce, the results would be much better than what WWII has done for the country to get out of the Great Depression. Surely the return on modern infrastructure is bigger than the return of some tanks and bombs that you ship overseas to get fcuked up.

But you know, if war machinery that is to be destroyed is what it takes, then fine. Build tanks, take them out to Nevada and blow them up. And then do it again. Point is, if you acknowledge that the debt and tax financed manufacture of war machinery was able to lift the country out of the Great Depression, then you's also have to admit that paying people with borrowed and taxed money to dig holes and then pay with such funds people to fill them back in would lift the country out of a recession. The tank you build gets eventually blown up without producing any lasting economic benefit. The hole gets filled without doing much for the economy either. If the former is a working strategy, the latter has to be as well.

Now what?

You still believe that Obama the Socialist has not spent a lot of money?

[Mr. Big Dog 10,747]

You still believe that Obama the Socialist has not spent a lot of money?

What has been spent to address the greatest recession since the Great Depression? A fraction of the hole that was left in the economy from the financial meltdown. Nothing compared to what was spent on the nations infrastructure by our grandparents and - for those old enough - parents. A pittance. Something like a mosquito pizz into a gallon jar.