Krugman: Obama Should Ignore "Huffing And Puffing" Stimulus Opponents

Economist Paul Krugman has been somewhat critical of President Obama's stimulus plan. But today in the New York Times he defends the proposal:

As the debate over President Obama's economic stimulus plan gets under way, one thing is certain: many of the plan's opponents aren't arguing in good faith. Conservatives really, really don't want to see a second New Deal, and they certainly don't want to see government activism vindicated. So they are reaching for any stick they can find with which to beat proposals for increased government spending.

Krugman goes on to debunk some of the arguments against the plan -- particularly the idea that tax cuts are inherently superior to new spending. But, he concludes, the critics don't matter much: "Most Americans aren't listening. The most encouraging thing I've heard lately is Mr. Obama's reported response to Republican objections to a spending-oriented economic plan: "I won." Indeed he did -- and he should disregard the huffing and puffing of those who lost."

Sen. John McCain (R-AZ) has positioned himself as a leading opponent to Obama's stimulus plan. Both he and House Minority Leader John Boehner (R-OH) pointed to the spending in the bill as the main cause of concern.

The full text of the House stimulus package can be read here.

Comments

[billw8017]

An odd argument has arisen concerning middle class relief. The middle class is expected to pay off its debts and put the rest in the bank; therefore, the money will not support the real economy but be lost. Really? Banks just hold the money, never spending or loaning it, maybe digging a deep hole and burying it? So, it's better for the government to give the money directly to the banks?

Other interesting arguments: 2) It's too much money. 3) It's too little money. 4) It won't get all blown immediately. 5) The expenditure won't endure.

Similar pairs can be laid out, but we will all remember the WMDs. These are arguments tested before focus groups with no regard for sense or truth and amount to blind partisan politicking. I agree with Aristotle that politics is the noblest art but ignoble people will live out their character despite all.

[stanrisdon]

Nothing will or can stimulate the economy until we reach bottom. And we are still falling. What comes next is far more important than the stimulus. Stop foreclosures. Kill the Bankruptcy income test. This will put a number to the bottom, and tell Obama exactly how much is needed to finally re-capitalize our banking system. Then we need to create new customers for the new banks. It will be very expensive.

[WhatIKnow]

Are these the same Republicans that passed almost everything George W. Bush sent to them? Are these the same Republicans that helped George W. Bush erase the SURPLUS Bill Clinton left when he exited office? Are these the same Republicans that only care about their personal agendas and not the concerns of the people? Are these the same Republicans that President Obama asked for their ideas and they presented the same old tired tax cut proposals?

Who are these people, really who are they? I have always contended that the ME and MINE policy is what Republicans understand best. It is really showing up now even after they were handed an olive branch for real input into making things better. Not doing anything is worse than making a wrong decision. We need to MOVE ON! There is no perfect remedy to our economic crisis but to do nothing is even more imperfect.

[DustyMills]

After the beating the Republicans took in the '08 elections, you would think they would have an idea that the American people are thru listening to the misguided attempts to make us believe that trickle-down economics along with tax cuts is the best way to govern. If that were true, we would all be livin' the life of Riley after the last 8 years. I give our President a whole lot of credit in trying to work with the Republicans, I would throw them all out on their worthless butts until they can actually work FOR the people of this country. Right now, I simply don't care one whit what any of them have to say.

[bonnetteblj]

Obama needs to hold the vote on the stimulus package in both the House and the Senate. Those
Republicans who oppose and vote against the stimulus will be noted and boldly opposed in
the next election cycles.

[preemptivelove]

republicans love deficit spending when it's for tax breaks only for the wealthiest, or when it's for feeding the military and defense industry, or when it's for bailing out investment banks so they can still afford their corporate jets. they love pretending to be fiscally responsible by cutting spending when it's for services for the neediest in our country. what a joke. paul krugman should make MORE noise pressuring obama to make his plan have LESS tax cuts and more infrastructure and program spending. indeed, obama won. and he won handily. this country expects him to do something major. change, remember? our country is a mess and we need to stop spending money on bombs and start feeding, educating and keeping the people HEALTHY. we are bankrupting our country with misguided priorities.

[padrushka]

I have been hoping Obama would ignore the huffing and puffing. We all know it is going to happen. A brick house will not blow down. Bricks,mor­tar,inerti­a in the high hopes we all have.

[TheloniousThinks]

There are times and places in economic history where tax cuts really do stimulate the economy [usually in places which are overtaxed. NOT our situation]

Krugman writes better and much more thoroughly, but the short version of why the Republicans are dead wrong is this...

If average Joe gets a tax cut this year, he will not spend it. He will pay off a bit of his credit card debt, not stimulating the economy.
If rich Joe gets a tax cut this year, he will buy gold and hunker down to wait for the bargain stocks and dirt cheap land when the markets hit bottom, not stimulating the economy.

FDRs public works projects did the job. They have been tested. We know they work and we know how to implement them. Let's get to it.

[rosal]

For eight years the "conservatives" didn't care about spending, borrowing, more spending and more borrowing. They didn't care about ethics, protocol, rule of law. They didn't care about ANYTHING. Now they are "champions of fiscal responsibility", what a joke! They should either follow, or get out of the way, they had their chance and they blew it. If things keep going down, we'll know who to blame AGAIN.

[TrueIndy08]

they have been cutting taxes for toooo long here in CA.... look where that has gotten us!

Now that our state is on the brink of financial ruin, those stupid right wingers on Sacramento are saying, "we might have to raise some taxes...." you think ??????

I am all for not having a huge tax bill... but at some point we must think realistica­lly..... REPUBLICANS ruin everything they touch!! KEEP THEM OUT OF POWER

[TrueIndy08]

we've been giving away tax cuts for the past 8 years....

those idiots on the right are always screaming, "cut taxes for job growth..." Seems to me the more we cut their taxes, the more they ax their workers and fatten their own pockets!!!!

He is some advice: LISTEN To KRUGMAN...­. he is a GENIUS!!! The Republicans opposing this are just afriad that finally AMERICA will wake up and see who truly cares about this country...­..

[Organic-Guy]

What good is a tax break to some one who is homeless or soon to be? When you're homeless or soon to be what you need is money, right now, for the most basic needs of your life.

[DawnK]

Of course John McCain is for tax breaks. Can you imagine what he and Cindy pay in taxes with their 7 houses, 13 cars and god knows what else? I mean they would have to pay a lot and so would John Boehner and all those other people who got tax breaks and made this country the economic force it is today! I mean come on. If they don't have that extra $100,000 on top of the millions they might have to sell a house or something and I am willing to never own a house so that John McCain doesn't have to sell one of his.

[tiredandworried]

Not as tired and worried as I was under Dubya. But our Big O has an awful lot to lift in front of him. Here is an idea about creating jobs: Convert the USA to the Metric System! That will make lots of work just in changing road signs and mile posts. Hmmm. But there are all those nuts and bolts we use which are not metric. Hmmm. I know: We all buy cars like BMWs and Mercedes, and the problem is solved! What do you think, Prof. Krugman? As for the UK, a change to right-hand driving might just save their economy -- to say nothing of changing over from Pounds to Euros. Note that these are jobs that cannot be sent overseas. Hmmm. Maybe the idea about cars was not so good, though.

[Whinger]

Obama should ignore Krugman, period!

[Gerald Shields]

Oh quit it Repug!

[WilliamP]

Yeah, who does this Krugman guy think he is anyway? It's not like he's a Nobel laureate who has been teaching Economics at a top university for years.

Maybe Obama should listen to the geniuses who think tax breaks improve the economy more than government spending does.