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Fri Feb 8, 2013, 02:13 PM

Krugman: Kick That Can

http://www.nytimes.com/2013/02/08/opinion/krugman-kick-that-can.html


John Boehner, the speaker of the House, claims to be exasperated. “At some point, Washington has to deal with its spending problem,” he said Wednesday. “I’ve watched them kick this can down the road for 22 years since I’ve been here. I’ve had enough of it. It’s time to act.”

Actually, Mr. Boehner needs to refresh his memory. During the first decade of his time in Congress, the U.S. government was doing just fine on the fiscal front. In particular, the ratio of federal debt to G.D.P. was a third lower when Bill Clinton left office than it was when he came in. It was only when George W. Bush arrived and squandered the Clinton surplus on tax cuts and unfunded wars that the budget outlook began deteriorating again.

...

Start with a basic point: Slashing government spending destroys jobs and causes the economy to shrink. This really isn’t a debatable proposition at this point. The contractionary effects of fiscal austerity have been demonstrated by study after study and overwhelmingly confirmed by recent experience — for example, by the severe and continuing slump in Ireland, which was for a while touted as a shining example of responsible policy, or by the way the Cameron government’s turn to austerity derailed recovery in Britain.

Even Republicans admit, albeit selectively, that spending cuts hurt employment. Thus John McCain warned earlier this week that the defense cuts scheduled to happen under the budget sequester would cause the loss of a million jobs. It’s true that Republicans often seem to believe in “weaponized Keynesianism,” a doctrine under which military spending, and only military spending, creates jobs. But that is, of course, nonsense. By talking about job losses from defense cuts, the G.O.P. has already conceded the principle of the thing.

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Reply Krugman: Kick That Can (Original post)
Scuba Feb 2013 OP
ErikJ Feb 2013 #1
abelenkpe Feb 2013 #2
libtodeath Feb 2013 #3

Response to Scuba (Original post)

Fri Feb 8, 2013, 02:26 PM

1. Weaponized Keynesianism

great term;

'It’s true that Republicans often seem to believe in “weaponized Keynesianism,” a doctrine under which military spending, and only military spending, creates jobs. But that is, of course, nonsense. By talking about job losses from defense cuts, the G.O.P. has already conceded the principle of the thing.'

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Response to Scuba (Original post)

Fri Feb 8, 2013, 02:55 PM

2. K&R nt

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Response to Scuba (Original post)

Fri Feb 8, 2013, 03:21 PM

3. It is the repukes that forever are kicking the can down the road by cutting services

save a dime today even though you know it will cost 10 dollars later to fix the problems it creates.
Look at health care and their refusal to address it.
How about crumbling infrastructure and unfunded public schools.

Look in a mirror boner if you want to see what has been destroying the country.

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