A noted economist makes the case for spending our way out of depression. He says getting more money into the economy -- spending -- is the way out and a better policy - as opposed to belt tightening to ward off the economic crisis.
Here is a quote
It's almost as if the financial markets understand what policy makers seemingly don't: that 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."
Here is a link to the original article
http://www.nytimes.com/2010/06/28/opinion/28krugman.html?src=me&ref=general
written by a true kook. Just because someone is smart doesn't make them wise. I'm not as smart as this person. BUT, I know you can't spend money you don't have. Not for long anyway.
ReplyDeleteWalter E Williams is the only economist worth listening to.
ReplyDeleteThe Great Depression was extended because of government intervention.
We have bail out money that can't be used since China won't buy any more dept.
We've gone from the greatest creditor nation to the greatest debtor nation in 2 short decades.
Had it not been for government intervention, we would still be in the great depression, or be a colony of another government by now.
ReplyDeleteLots of conservatives must be from Egypt. They are in De-Nile.
Wow. You found ONE economist who thinks Obama is on the right track. Never mind the thousands who say it will not work.
ReplyDeleteI tried it with my credit card. I just kept buying and buying, and when I was in way over my head, I just buckled down and bought more and more. It never did get me out of debt. Weird.
Duhhh, what if you had bought things that could have made a profit?
ReplyDeleteInstead of just junk to consume?
Oh you mean like a car company or two? Maybe some banks? You people who think government is the answer need to rethink the question.
ReplyDeleteOdd. It seemed to make so much sense when Reagan said it.
ReplyDeleteKrugman a kook? See, in 2006, he predicted the housing crash. They called him a kook then too.
And in 2004, he predicted that the Euro would get into trouble as soon as any government inside the union refused to raise taxes to match its spending. They called him a kook then too.
And in 2009, he said the stimulus was too small, and would result in a "jobless recovery", along with idiots blaming the medicine for the disease.
Yup,8:15, whatta kook. When you keep saying true things to people too emotionally wedded to their cherished illusions to actually listen to what you have to say, that's pretty nuts all right.
Well his theory might have some merit if it weren't for all the DEBT we keep carring over from Generation to Generation!
ReplyDeleteThe interst on that Debt will be just as destructive if not more than the actual recession!
Just wait and see - if they keep borrowing to try and Stimulate the economy!
AND
If we keep propping things up that should have FAILED!
That money won't even see a chance to be productive! It was already (spent) lost!