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Fri Nov 9, 2012, 11:46 AM

Paul Krugman Urges Obama To Not Make Fiscal Cliff Deal With GOP

Nobel Prize-winning economist Paul Krugman is urging President Barack Obama to not make a fiscal cliff deal with Republicans, who he says are threatening to tank the U.S. economy if they don’t get their own way.

Instead, in a new op-ed piece for The New York Times, Krugman noted Obama, who was re-elected President on Tuesday, should “hang tough” and make it clear that he’s willing to let Republicans damage the already shaky economy, if necessary.

Krugman explains:

“And this is definitely no time to negotiate a “grand bargain” on the budget that snatches defeat from the jaws of victory. In saying this, I don’t mean to minimize the very real economic dangers posed by the so-called fiscal cliff that is looming at the end of this year if the two parties can’t reach a deal. Both the Bush-era tax cuts and the Obama administration’s payroll tax cut are set to expire, even as automatic spending cuts in defense and elsewhere kick in thanks to the deal struck after the 2011 confrontation over the debt ceiling. And the looming combination of tax increases and spending cuts looks easily large enough to push America back into recession.

Nobody wants to see that happen. Yet it may happen all the same, and Mr. Obama has to be willing to let it happen if necessary.

Why? Because Republicans are trying, for the third time since he took office, to use economic blackmail to achieve a goal they lack the votes to achieve through the normal legislative process. In particular, they want to extend the Bush tax cuts for the wealthy, even though the nation can’t afford to make those tax cuts permanent and the public believes that taxes on the rich should go up — and they’re threatening to block any deal on anything else unless they get their way. So they are, in effect, threatening to tank the economy unless their demands are met.”


Read more: http://www.ibtimes.com/paul-krugman-urges-obama-not-make-fiscal-cliff-deal-gop-867210

8 replies, 1463 views

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Reply Paul Krugman Urges Obama To Not Make Fiscal Cliff Deal With GOP (Original post)
Galraedia Nov 2012 OP
bkkyosemite Nov 2012 #1
John2 Nov 2012 #2
summerschild Nov 2012 #3
John2 Nov 2012 #4
Ghost of Tom Joad Nov 2012 #5
Myrina Nov 2012 #6
kenny blankenship Nov 2012 #7
treestar Nov 2012 #8

Response to Galraedia (Original post)

Fri Nov 9, 2012, 11:57 AM

1. Right On!

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Response to Galraedia (Original post)

Fri Nov 9, 2012, 12:25 PM

2. It

 

is not just Krugman but those who elected President Obama. We did not elect him to implement Romney's Policies period! That is essentially what Boehner is trying to manuever here. He doesn't fool me one bit! Lets go off the cliff. I'll be here 2014. We just have to kick the GOP's butt again period. Go to immigration if they don't want to deal and get the GOP's position on this issue. We can also end the war in Afghanistan while we get revenue. If it takes all four years to fight them, lets get it on. I'm willing to go the distance with the Repukes. Pass this ball back to their court.

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Response to Galraedia (Original post)

Fri Nov 9, 2012, 12:59 PM

3. If Obama extends the cuts even for a month, haven't we lost all leverage in a sane compromise?

The GOP would simply turn around and start the same crap in February over the debt ceiling.
I vote for going off the cliff.

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Response to summerschild (Reply #3)

Fri Nov 9, 2012, 02:08 PM

4. After

 

listening to President Obama's comments, I think he is going to hold the line on taxcuts. It is in the Repubs court now. If they don't act it will expire. He also said he will sign the taxcuts for the middle class right now. The repubs are the only one holding it hostage. There is no need to hold them hostage for the Repukes' sacred cow.

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Response to Galraedia (Original post)

Fri Nov 9, 2012, 02:31 PM

5. why doesn't the President hire this man?

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Response to Galraedia (Original post)

Fri Nov 9, 2012, 02:47 PM

6. Yes please, and get either Reich or Krugman into the Cabinet.

Or both.

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Response to Galraedia (Original post)

Fri Nov 9, 2012, 09:12 PM

7. The question isn't "how far should Obama go to meet Republicans"

in the joint knifing of Social Security and Medicare,

But rather how far will YOU go to stop him?

Your only point of leverage is your Congressional Dems, since Obama doesn't give a shit what you think. But just calling them on the phone isn't going to work. We called them before the Iraq War...



Like the Greek Parliament, they need to hear from the people they're about to screw over in person.

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Response to Galraedia (Original post)

Sat Nov 10, 2012, 10:22 AM

8. I hope he does

No matter what the downside may be - because I am tired of wanna be Sec. of Treasury trashing O. when O. does not follow his advice. It's a second term, no worries about re-election, but my concern is O. will worry more about the people and families affected and pick stability for them over gamesmanship.

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