Krugman: How to Kill a Recovery

[ProSense]

How to Kill a Recovery

By PAUL KRUGMAN

The economic news has been better lately. New claims for unemployment insurance are down; business and consumer surveys suggest solid growth. We’re still near the bottom of a very deep hole, but at least we’re climbing.

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The clear and present danger to recovery, however, comes from politics — specifically, the demand from House Republicans that the government immediately slash spending on infant nutrition, disease control, clean water and more. Quite aside from their negative long-run consequences, these cuts would lead, directly and indirectly, to the elimination of hundreds of thousands of jobs — and this could short-circuit the virtuous circle of rising incomes and improving finances.

Of course, Republicans believe, or at least pretend to believe, that the direct job-destroying effects of their proposals would be more than offset by a rise in business confidence. As I like to put it, they believe that the Confidence Fairy will make everything all right.

But there’s no reason for the rest of us to share that belief. For one thing, it’s hard to see how such an obviously irresponsible plan — since when does starving the I.R.S. for funds help reduce the deficit? — can improve confidence.

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[MannyGoldstein]

1. Too bad Obama was "hostaged" into preserving tax cuts for the rich

And raising taxes on the working poor, - those folks spend their money to survive.

Ah, but a round of golf with Jeb oughta make things right.

[ProSense]

2. "Ah, but a round of golf with Jeb oughta make things right."

Krugman wrote an article about Republicans, but it's important for you to project their bullshit onto the President based on previous kneejerk bullshit.

Is there going to come a time when people focus on Republicans or is the goal to encourage more Wisconsins so that the complaining party can last forever?

[MannyGoldstein]

9. You have a point

Maybe a Medal of Freedom for Poppy will suffice.

[ProSense]

3. Oh, and here's

what's in the President's budget

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The president, in a $3.7 trillion budget plan released yesterday in Washington, revived dozens of proposals that Congress has rejected, including $129 billion in higher taxes on the overseas profits of U.S. companies. He also proposed changing the tax treatment of oil, gas and coal companies, which would raise about $46 billion.

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The proposal also would bring back pre-2001 tax rates on income and capital gains for individuals earning more than $200,000 annually and married couples making more than $250,000. The estate tax would return to 2009 levels with a $3.5 million per-person exemption and a 45 percent top rate. Under a law Obama signed in December, lower rates expire at the end of 2012.


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The budget plan would limit itemized deductions for top earners to 28 percent, curbing the value of tax breaks for charitable contributions, home mortgage interest and state and local taxes. That proposal has been included in every budget of Obama’s presidency and was rejected as a revenue-raising provision to fund his overhaul of the health system last year.

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Also included is a $30 billion tax on the largest financial institutions.

Obama's budget and low-income families, head start, homelessness

[MannyGoldstein]

8. It's impressive

that he's proposing for things he has no record of fighting for and the Republicans will reject.

[Jakes Progress]

10. Shhhh. It bothers some that words alone won't do it.

[flpoljunkie]

4. A must read.

(Emphasis mine)

And do you remember the lavish praise heaped on Britain’s conservative government, which announced harsh austerity measures after it took office last May? How’s that going? Well, business confidence did not, in fact, rise when the plan was announced; it plunged, and has yet to recover. And recent surveys suggest that confidence has fallen even further among both businesses and consumers, indicating, as one report put it, that the private sector is “unprepared to fill the hole left by public sector cuts.”

Which brings us back to the U.S. budget debate.

Over the next few weeks, House Republicans will try to blackmail the Obama administration into accepting their proposed spending cuts, using the threat of a government shutdown. They’ll claim that those cuts would be good for America in both the short term and the long term.

But the truth is exactly the reverse: Republicans have managed to come up with spending cuts that would do double duty, both undermining America’s future and threatening to abort a nascent economic recovery.

http://www.nytimes.com/2011/03/04/opinion/04krugman.html?hp

[Democat]

5. Why don't Democrats start screaming this from every talk show?

Instead of bowing their heads to Republicans and acting like they aren't in control of the White House and the Senate.

It's like we're in the minority even when we're in the majority.

[ProSense]

6. Last week the media had to be called out

to book Trumka: After Progressive Pressure, Sunday Show Will Feature Labor Leader

Why wasn't a union leader a natural choice for the media given the massive protests going on across the country?

It's well known that the talk shows aren't in the habit of frequently inviting Democrats and progressive leader to appear.

[obamafourmore]

7. Good to see the Krugman is stepping out of his double-dip doom and gloom cycle

[Jakes Progress]

11. Very, very true that republicans suck.