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Fri Dec 14, 2012, 11:48 AM

KRUGMAN: "We are not having a debt crisis-We are having a political crisis"

We are not having a debt crisis.

Paul Krugman

Blog: The Conscience of a Liberal

It’s important to make this point, because I keep seeing articles about the “fiscal cliff” that do, in fact, describe it — often in the headline — as a debt crisis. But it isn’t. The U.S. government is having no trouble borrowing to cover its deficit. In fact, its borrowing costs are near historic lows. And even the confrontation over the debt ceiling that looms a few months from now if we do somehow manage to avoid going over the fiscal cliff isn’t really about debt.

No, what we’re having is a political crisis, born of the fact that one of our two great political parties has reached the end of a 30-year road. The modern Republican Party’s grand, radical agenda lies in ruins — but the party doesn’t know how to deal with that failure, and it retains enough power to do immense damage as it strikes out in frustration.



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Reply KRUGMAN: "We are not having a debt crisis-We are having a political crisis" (Original post)
kpete Dec 2012 OP
bemildred Dec 2012 #1
ProSense Dec 2012 #2
bvar22 Dec 2012 #3

Response to kpete (Original post)

Fri Dec 14, 2012, 12:17 PM

1. Correct as always. This is about power, not money. nt

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Response to kpete (Original post)

Fri Dec 14, 2012, 12:34 PM

2. Excellent!

Since the 1970s, the Republican Party has fallen increasingly under the influence of radical ideologues, whose goal is nothing less than the elimination of the welfare state — that is, the whole legacy of the New Deal and the Great Society. From the beginning, however, these ideologues have had a big problem: The programs they want to kill are very popular. Americans may nod their heads when you attack big government in the abstract, but they strongly support Social Security, Medicare, and even Medicaid. So what’s a radical to do?

The answer, for a long time, has involved two strategies. One is “starve the beast,” the idea of using tax cuts to reduce government revenue, then using the resulting lack of funds to force cuts in popular social programs...Arguably more important in conservative thinking, however, was the notion that the G.O.P. could exploit other sources of strength — white resentment, working-class dislike of social change, tough talk on national security — to build overwhelming political dominance, at which point the dismantling of the welfare state could proceed freely. Just eight years ago, Grover Norquist, the antitax activist, looked forward cheerfully to the days when Democrats would be politically neutered: “Any farmer will tell you that certain animals run around and are unpleasant, but when they’ve been fixed, then they are happy and sedate.”

O.K., you see the problem: Democrats didn’t go along with the program, and refused to give up. Worse, from the Republican point of view, all of their party’s sources of strength have turned into weaknesses. Democratic dominance among Hispanics has overshadowed Republican dominance among southern whites; women’s rights have trumped the politics of abortion and antigay sentiment; and guess who finally did get Osama bin Laden.

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Response to kpete (Original post)

Fri Dec 14, 2012, 03:58 PM

3. Krugman correctly diagnosed 1/2 of the problem.

The 1/2 of the problem he ignored was the complete absence of a an opposition voice that is pushing for traditional Democratic Party Solutions to help balance the National debate.

Where are the LOUD Democratic Party voices calling for the PROVEN solutions

*more, MUCH MORE Government Spending

*Medicare for ALL

* HUGE National Works Programs

*a return to the proven Tax & Trade Policies of the 60s,

*+70% on the top bracket

*minimum Capital gains tax of 25%

*Strong Corporate regulation

*Glass-Steagall on Steroids

*Fairness Doctrine

*Renegotiation of NAFTA/ ALL so called "Free Trade" treaties

*Break Up "Too-Big-to-Fails"

*Reinforce & Redeploy Sherman Anti-Trust Act to prevent Walmart (Big Boxes) from undercutting locally owned Businesses

The Republican party is On-the-Ropes.
Why should we let THEM dictate policy?

Why should America be forced to settle for Milquetoast, ineffective, 1/2 Republican, Centrist, 1/2 measures?

Where ARE the voices calling for Democratic Solutions?

[font color=firebrick][center]"There are forces within the Democratic Party who want us to sound like kinder, gentler Republicans.
I want a party that will STAND UP for Working Americans."
---Paul Wellstone [/font]
[font size=1]photo by bvar22
Shortly before Sen Wellstone was killed[/center]

You will know them by their WORKS,
not by their rhetoric, promises, or excuses.
[font size=5 color=green]Solidarity99![/font][font size=2 color=green]

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