Paul Krugman

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The Krugman Equation and Ending Political Theater To Save A Nation's Economy

  • Posted on: 18 February 2011
  • By: GreyHawk

Paul Krugman's OpEd in The New York Times yesterday, titled "Willie Sutton Wept," makes a few very important points for anyone who's truly interested in learning about the factors affecting our current budget 'crunch' and the ongoing debates on what to cut. (Read it here.) He makes three points about the current "budget debate" right off the bat, summarized in my bullet list below:

  1. It's essentially fraudulent
  2. Self-proclaimed deficit "hawks" ~aren't~
  3. President Obama deserves a lot more credit for fiscal responsibility than he's been getting

Most of this boils down to the reality that the current budget "crisis" is ignoring the realities of what is impacting the economy the most, while the kabuki theater that the GOP is performing (and not performing alone) in the Potemkin village of our nation's capital isn't just for show -- it's also damaging our meager recovery. Krugman reiterates what we've already seen from looking at the CBO's numbers and from additional sources -- that the core costs which will rise sharply over the next few years will be from health insurance programs, not Social Security. And the lack of revenues from the additional taxes that we lost due to the tax cuts are making the whole situation much worse.

 

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How Can Tax Cuts Make This Pile Of Money Trickle Down?

  • Posted on: 7 July 2010
  • By: Connecticut Man1

They've got their massive piece of the pie... And they want more.

Corporations Sitting On $1.84 Trillion Cash

From last month: U.S. Firms Build Up Record Cash Piles,

U.S. companies are holding more cash in the bank than at any point on record, underscoring persistent worries about financial markets and about the sustainability of the economic recovery.

The Federal Reserve reported Thursday that nonfinancial companies had socked away $1.84 trillion in cash and other liquid assets as of the end of March, up 26% from a year earlier and the largest-ever increase in records going back to 1952.

The problem is reduced demand. Continuing unemployment means that the economy is not producing demand, so businesses are not willing to risk investing in meeting demand, which means they are not hiring, which means unemployment continues.

Seriously? They are already hoarding vast sums of money - probably trying to figure out how to offshore it with our jobs too - and the GOP plan, the highly desired plan of corporations and the their rich owners, is giving them more with tax cuts for the listless elites. That will just be a bigger welfare check than the ones we already floated Wall Street for doing absolutely nothing to fix the disaster they created.

Meanwhile, the screech of the typical village idiot corporate shills and deficit peacocks is getting shrill:

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One of those days when depression may set in...

  • Posted on: 28 June 2010
  • By: Connecticut Man1

Not like many average people have not seen this coming. We have to honestly live this crap.  This is the kind of thing that the typical beltway insiders and their elite welfare society friends are above noticing:

The Third Depression
By PAUL KRUGMAN

We are now, I fear, in the early stages of a third depression. It will probably look more like the Long Depression than the much more severe Great Depression. But the cost — to the world economy and, above all, to the millions of lives blighted by the absence of jobs — will nonetheless be immense.

At a time when the elites met at the G20 and decided that we aren't suffering enough so they are going to force more cuts on us... Instead of them paying their share. Over 4 trillion in elite welfare last year (just for the banksters and Wall St. alone - not including the Halliburtons of the world in that) and these scum sucking financial elitists want to tell us about watching our spending. They just want to cut our social safety nets so they can increase their corporate welfare.From bobswern's diary at dKos a couple of thoughts from others as point and counterpoint:

False Sense of Security From Masters of Econ Disasters And The Markets Empty Threats

  • Posted on: 24 June 2010
  • By: Connecticut Man1

It is becoming pretty darn clear that the fools that created the economic disaster think they can push us through it on their wishful thinking. Idiots like Geithner are painting rosy pictures of what they are doing - with Obama noddingly approving of it - and hoping you, the average American and the ones that are still being crushed economically, won't notice. Yves there:

Geithner Yet Again Misrepresents TARP “Performance”

Meanwhile and according to Paul Krugman,

Against The Super-Asinine, The Gods Themselves Contend in Vain


Brad DeLong wonders how the proponents of tight budgets and tight money are prevailing in the midst of mass unemployment, low interest rates, and incipient deflation.

It’s actually not all that surprising. Horrifying, but not surprising.

The case for expansionary policies in the face of a slump is intellectually difficult; Keynes described the writing of the General Theory as a painful process of discovery, and so it is. The natural instinct of almost everyone is to think that tough times require tough measures, and that if the economy is suffering, the government should tighten its own belt. It would take a clear consensus from economists to overcome that natural bias.

And that consensus has, of course, been lacking — largely because a significant proportion of the economics profession has spent the last three decades systematically destroying the hard-won knowledge of macroeconomics. It’s truly a new Dark Age, in which famous professors are reinventing errors refuted 70 years ago, and calling them insights.

While we bear in mind that there may be real solutions that will stop this disaster from happening again, and the need to really address the results of it honestly, there are the underlying rules of a market whose obscene motto for years was:

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When Is a Recovery? And, Is It, Even Then?

  • Posted on: 13 July 2009
  • By: Aaron Barlow


All the talk of a ‘jobless recovery’ going on gives me the heebie-jeebies. What bothers me is that people get left out of the equation. The economy becomes nothing more than Gross Domestic Product (GDP) on the idea that if it goes up, things get better for everyone. A rising tide floats all boats sort of argument.


Somehow, I suspect, that’s related to ‘trickle down,’ even though the water’s going in different directions.

Open Thread" Two Schools of Banking. Which Do You Choose?

  • Posted on: 10 April 2009
  • By: Open Thread

Would you buy a used car from this man?  Here are Larry Summer's predictions on the economy,

Lawrence Summers, a top economic adviser to President Barack Obama, told the Economic Club of Washington that the country is likely to see positive economic signs in the next few months despite continuing job losses and frozen lending markets.

An economy that performs like a ball rolling off a table’s edge is likely to end this year, Summers said. “I think we can be reasonably confident that that’s going to end in the next few months,” he said. But he added that, “How strong, how rapid the return will be - that’s a less clear question.”

In his latest Op Ed, Paul Krugman calls for Making Banking Boring. He contrasts the period before the New Deal and after 1980 , with the period when  tight regulations were in place:  (empahsis below mine).

Because Enquiring Minds Want to Know

  • Posted on: 25 February 2009
  • By: Connecticut Man1

Paul Krugman wants to know:

During the Bush years, it often seemed that on any given day all the leading conservative commentators were reading from the same list of talking points — because they were.

But without a conservative in the WH, who’s handing out the talking points now?

One thing’s for sure: someone is.

The thing about the internet is that there is always someone out there that knows the answers even if, on occasion, you don't...

Free Trade vs Smart Trade, Edwards takes on the Supply-Siders

  • Posted on: 28 December 2007
  • By: jamess

Since the days of Reagan, America has been chasing a Theory.

Since the Clinton era, and the rise of NAFTA and Global Free Trade, our "Corporate Leaders" have been conducting an unprecedented Social Experiment.

The Experiment: Economic Darwinism

The Test Subjects in this Experiment: none other than American Workers and our "more competitive" counterparts, overseas.