From Krugman's op-ed
in [Toyota]
|
Prev: Ridiculous Cad Cam sales scheme from Maxwel Render
Next: {BS} DOJ Drops suit against New Black Panthers
From: Cliff on 6 Jul 2010 13:00 [ Here are some key excerpts from Krugman's op-ed: [ 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. And this third depression will be primarily a failure of policy. Around the world...governments are obsessing about inflation when the real threat is deflation, preaching the need for belt-tightening when the real problem is inadequate spending. Unemployment�especially long-term unemployment�remains at levels that would have been considered catastrophic not long ago, and shows no sign of coming down rapidly. In the face of this grim picture, you might have expected policy makers to realize that they haven't yet done enough to promote recovery. But no: over the last few months there has been a stunning resurgence of hard-money and balanced-budget orthodoxy. While long-term fiscal responsibility is important, slashing spending in the midst of a depression, which deepens that depression and paves the way for deflation, is actually self-defeating. So I don't think this is really about Greece, or indeed about any realistic appreciation of the tradeoffs between deficits and jobs. It is, instead, the victory of an orthodoxy that has little to do with rational analysis, whose main tenet is that imposing suffering on other people is how you show leadership in tough times. ] You can read the whole thing and pass it on to your friends here: http://www.nytimes.com/2010/06/28/opinion/28krugman.html ]
From: Speeders & Drunk Drivers are MURDERERS on 6 Jul 2010 14:59
On Jul 6, 11:00 am, Cliff <Clhuprichguessw...(a)aoltmovetheperiodc.om> wrote: > [ > Here are some key excerpts from Krugman's op-ed: > [ > 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. > And this third depression will be primarily a failure of policy. Around the > world...governments are obsessing about inflation when the real threat is > deflation, preaching the need for belt-tightening when the real problem is > inadequate spending. > > Unemployment especially long-term unemployment remains at levels that would have > been considered catastrophic not long ago, and shows no sign of coming down > rapidly. > > In the face of this grim picture, you might have expected policy makers to > realize that they haven't yet done enough to promote recovery. But no: over the > last few months there has been a stunning resurgence of hard-money and > balanced-budget orthodoxy. > > While long-term fiscal responsibility is important, slashing spending in the > midst of a depression, which deepens that depression and paves the way for > deflation, is actually self-defeating. > > So I don't think this is really about Greece, or indeed about any realistic > appreciation of the tradeoffs between deficits and jobs. It is, instead, the > victory of an orthodoxy that has little to do with rational analysis, whose main > tenet is that imposing suffering on other people is how you show leadership in > tough times. > ] > > You can read the whole thing and pass it on to your friends here:http://www.nytimes.com/2010/06/28/opinion/28krugman.html > ] Krug is an idiot who still thinks govt spending ended the great depression of the 1930s. In fact it prolonged it. Govt should stay out and let the economy heal itself. If the Big Banks had been allowed to fail in 2008 we'd be in fine shape now. |