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wgjerde768071
Senior Contributor

Krugman was right about austerity budgets

http://www.reuters.com/article/2013/04/16/us-global-economy-debt-idUSBRE93F16C20130416

 

 

Looks like Krugman was right after all  see link

22 Replies
r3020
Senior Advisor

Re: Krugman was right about austerity budgets

Every Harvard grad knows you can barrow and print indefinitely. Krugman himself gave the long term solution: sales tax and death panels.

Re: Krugman was right about austerity budgets

BA Deere
Honored Advisor

Re: Krugman was right about austerity budgets

Yes Krugman is right about austerity...........but he shouldn`t be, a nation should not be so dependent on deficit spending that any attempt to live within their means, throws the country into a depression.  The system is flawed and the roots go back 100 yrs when the federal reserve was created. 

 

This is why betting on inflation will win in the end, no administration wants to be "the one that presided over a depression" We are lucky we can just print our way out(Cyprus isn`t so fortunate), that too does end at some point, `til then ♫Happy ♪Days are here♫ again.....♪  

 

But when Benanke puts $85 billion/month into the economy out of thin air and on top of that the government spends $1 trillion more than we take in.  And the GDP is what??? Should be 5 times that with all this stimulus.

Re: Krugman was right about austerity budgets

If government can run deficits and accumulated debt to no effect why have taxation at all?
BA Deere
Honored Advisor

Re: Krugman was right about austerity budgets

Excellent point Sam, I think actually the only real purpose of taxes is social engineering. The philosophy from the left of "you didn't build that" comes out that "all wealth is derived from the government".
wgjerde768071
Senior Contributor

Re: Krugman was right about austerity budgets

To all  I should have been clearer My point is on gdp growth would not be negative because of deficit spending I believe Krugman said that some point you have to pay the debt back but doing it durning a recession was not the time to do it  The laffer economics said you can cut your way out of a recession.  Thanks for comments

Re: Krugman was right about austerity budgets

     If government can run deficits and accumulated debt to no effect why have taxation at all?   

 

     I think you have said before something to the efect that in all reality the government does run on deficets and debt.   The taxes is plunder/interest for the Banksters/Fed.

BA Deere
Honored Advisor

Re: Krugman was right about austerity budgets

No one with the possible exception of Ron Paul was talking about paying the debt off, Romney/Ryan talked about balancing the budget in 10 yrs, after first saying "30 years".   Besides the 12 months prior to November 6th, 2012, it was widely declared that "the recession is over!". 

 

The problem is with our system is "every dollar that is in existance is borrowed from the fed", if the government was able to pay the debt off, it would only be because someone else would take on that debt (taxpayers in the private sector) .  To illustrate, say there are only 10 dollars in existance and they are all borrowed dollars, with interest due on them....where would the "eleventh dollar"  come from to pay it off.  The only possible way would be a Biblical "year of jubilee" where debts are forgiven.

 

John Maynard Keynes wouldn`t recognize what we are doing in his name at the present time.  We are essentially "hiring people to go around town to break windows" to stimulate the economy with the activity of "fixing windows".  That`s what we are exactly doing when we hire unneeded police to fight non-existent crime, making pre-school(babysitting) mandatory so that more teachers are hired and creating more unaffordable entitlements (0bamacare).

 

I think you must play the hand dealt to you and we are Keynes on steroids.  That being the case that we want to stimulate the economy through government spending, let`s do it smartly.  Fix our locks and dams on the river(look at Brazil`s infrastructure nightmare), build and fix our roads and bridges, at least give the okay to projects like the Keystone pipeline.  And for God sakes, do NOT grant amnesty to illegals which would make 11million more eligible for the government tlt.   Again, 11 million illegals "doing jobs that Americans won`t" ...and 11 million Americans that are out of work...DO THE MATH!