PDA

View Full Version : Will Someone Please Shut Krugman Up?!


whell
10-25-2010, 06:39 AM
I must admit I read this with the same delight as I might achieve when digging into a double scoop of chocolate ice cream.

http://blogs.telegraph.co.uk/finance/jeremywarner/100008311/will-someone-please-shut-krugman-up/

merrylander
10-25-2010, 07:42 AM
Never could stand Krugman, Nobel or no, but Warner does not sound too swift either.

d-ray657
10-25-2010, 08:46 AM
I notice the blogger didn't say anything about increased revenue as a means of attacking the deficit. (The GOP and Tea Baggers have made that sound fiscal measure as toxic as a smelly derivative.) He also poo-pooed the thought of demilitarization as a means of deficit reduction. Britain is able to attack it's deficit without having to bear the major cost of being world cops. (As much good as the US involvement in the ME has done for him, we ought to be sending a bill to Osama Bin Laden)

The blogger also ignores the economic studies showing that without the fiscal stimulus, Tarp and Fed intervention, the deficit would have half again as much. Fiscal policy includes includes an analysis of both revenue and expenditures. Despite years and years of the failed experiment in supply side economics, the American public has been conditioned to expect something for nothing. (And forget the BS about entitlements. The working class has been on a pay-as-you-go plan for that for decades.)

Regards,

D-Ray

finnbow
10-25-2010, 02:08 PM
From the article:

Good stuff, and who knows? Maybe he’s right....Professor Krugman suggests that Britain has nothing to fear from excessive public debt, which is still as things stand below its long run historical average. He’s technically right about this ...

While this blogger may be right that the amount of debt reduction in the face of economic hard times may be the right thing, he's conceding he may be wrong (the results of which would be a depression for the UK).

I'm not sure whether or not Krugman is right, but I readily admit that I admire the British political establishment for administering tough medicine. Can you actually imagine the GOP doing the same? They're still sold on the discredited "Reaganomics" (i.e., you can have it all and you don't have to pay for it). The GOP will never make such tough decisions. Their "snake oil" approach to economics seems to work for them (in electoral terms at least).

piece-itpete
10-25-2010, 02:20 PM
Or the Dems Finn.

Pete

finnbow
10-25-2010, 02:35 PM
Or the Dems Finn.

Pete

The main difference between the GOP and Dem's economic messages are "You can have it all and you don't have to pay for it" and "You can have it all, but you're going to have to pay for it."

Neither has worked out very well other than a stretch during the Clinton administration. I think the dishonest part of both messages is that we can have it all and that Washington (both parties) will be the ones "giving" it to us. The Dems want to do it with tax money and the GOP with borrowed Chinese money. Neither is sustainable or desirable.

As for Krugman, I like reading him because he's at least intelligent and argues well for his point of view. Is he right? Who knows? Economics is, after all, the dismal science. No matter - at least he's not some ignorant fool like Sarah, Angle, or O'Donnell pretending to have a clue.

merrylander
10-25-2010, 03:41 PM
Like Harry Truman I am still looking for a one armed economist.

piece-itpete
10-26-2010, 09:14 AM
The main difference between the GOP and Dem's economic messages are "You can have it all and you don't have to pay for it" and "You can have it all, but you're going to have to pay for it." ....

Really. I can't find them saying that anywhere Finn ;)

Pete

finnbow
10-26-2010, 09:33 AM
Really. I can't find them saying that anywhere Finn ;)

Pete

It's Finnbow shorthand.;)

In a nutshell, the Dem's say we can (ultimately) balance the budget by a combination of raising taxes and cutting spending. The GOP says that cutting taxes will cure all ills. Taken to the extreme, GOP thinking was that we could pay for two wars if we continued to "go shopping" and cutting taxes. Somehow, that didn't seem to work out as planned.

piece-itpete
10-26-2010, 10:32 AM
Once again Finn, I have yet to hear about it except through the occassional Dem talking about it :)

Pete

finnbow
10-26-2010, 10:46 AM
I guess what you hear depends on where you stand. The economic arguments of both parties are disingenuous at best, particulary around election time. It's all a matter of degree, methinks.

FWIW, I just happen to think that the GOP's arguments are more disingenous. However, I think more people buy into them because they're less painful (i.e., Boehner stating that we can achieve balance by keeping the Bush taxcuts, increasing military spending (more for Star Wars), not reducing entitlements, but capping discretionary spending to 2008 levels). Yeh, right.

piece-itpete
10-26-2010, 10:52 AM
I believe cuts are coming Finn, both parties have their heads stuck in a barrel screaming not me! not me!

Now if we could figure out how to keep them there...

:D

Pete

merrylander
10-26-2010, 12:33 PM
I believe cuts are coming Finn, both parties have their heads stuck in a barrel screaming not me! not me!

Now if we could figure out how to keep them there...

:D

Pete

Can we get them all in a barrel and send it over Niagra Falls?:)