Krugman Predicts Painful Road if Deficit Hypocrites Prevail

[depakid]

We don't know for sure that New York Times columnist Paul Krugman and former Federal Reserve chief Alan Greenspan had each other in mind when they penned diametrically opposed op-eds, both of which ran today. But, we can hope.

tart with their titles. Greenspan's Wall Street Journal piece is dubbed "U.S. Debt and the Greece Analogy" (You can guess where that piece is headed.) Ever the Keynesian, Krugman's piece is titled, "That '30s Feeling."

The key issue for both Krugman and Greenspan, of course, is deficits and spending. For Krugman, the world's recent turn toward austerity, evinced by Congress's recent refusal to extend unemployment benefits and cutbacks in social services across Europe, is a sign that governments are afraid to spend enough to stimulate economic growth. "Suddenly, creating jobs is out, inflicting pain is in," he writes.

<snip>

Krugman -- nor any major economist following the crisis -- has ever argued that we can continue to borrow cheaply from foreign countries indefinitely. The larger problem, he suggests, is that here in the states politicians are deeply inconsistent about which benefits get cut in the continuing push to trim Federal spending. Here's Krugman.

"In America, many self-described deficit hawks are hypocrites, pure and simple: They're eager to slash benefits for those in need, but their concerns about red ink vanish when it comes to tax breaks for the wealthy. Thus, Senator Ben Nelson, who sanctimoniously declared that we can't afford $77 billion in aid to the unemployed, was instrumental in passing the first Bush tax cut, which cost a cool $1.3 trillion. "

More: http://www.commondreams.org/headline/2010/06/18-4

[whattheidonot]

1. revolution.

Revolution time is near

[chill_wind]

2. K & R. n/t

[LongTomH]

3. Krugman is a treasure!

An economist with a great deal of common sense, the courage to speak truth, and the credentials to make people take him seriously.

It would be worthwhile to look at some of Prof. Krugman's earlier blog posts, especially the one warning of a Lost Decade like Japan in the 90's.

[msongs]

4. lol he is obviously a HATER nt

[hay rick]

5. K&R

[applegrove]

6. Love Krugman.

[Greyhound]

7. K&R