Paul Krugman Makes Stephen Colbert 'Physically Hurt' With Depression Talk (VIDEO)

Paul Krugman had an alternately terrifying and hilarious discussion with Stephen Colbert on Tuesday's "Colbert Report."

Krugman was on to talk about the economic crisis. He repeated his mantra that government spending was badly needed to spur economic growth. Colbert said that regulation was "strangling" business confidence, which was a nice segue for Krugman's well-known "confidence fairy" that would save the economy.

"There might be children right now," Colbert said. "The confidence fairy is real, right?"

"Will you say right now that we are headed into another depression?" Colbert asked. "We're already in a kind of a depression," Krugman calmly said. Colbert visibly blanched. The look of terror that crossed over his face was rather priceless.

"That physically hurt to hear you say," he said. Colbert wondered if, as in the 1930s, people should start making musicals where young blond children "sing ditties with aged Negroes."

"I thought that iPads are basically the equivalent," Krugman said.

"Did you just call iPads an aged Negro?!" Colbert said. "I am not going to sit here and have a Nobel laureate make racist statements about Steve Jobs!"

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Comments

[pvbeachbum]

04:01 PM on 09/17/2011

Krugman he Koward.....all he wants to do is $$$pend, $$$pend, $$$pend. I know Geithner is bad... but can you imagine Krugman the Koward head of the Treasury!

[Kelly Nickell]

11:31 PM on 09/17/2011

Can you imagine putting a government employee on a private payroll still paid for with tax dollars at double the price?

The GOP calls it cost cutting by privatizing and outsourcing. Now the swamp has been drained and the high end refuses to cover the costs of 135,000 companies and contractors providing goods and services to the U.S. government-not in it to turn a profit, at a profit.

How sweet is that? Twisted spending narrative with a simple explanation.

The GOP has been working towards this moment for what, thirty-five years?

Now the dog has caught the bus, what next? A full fifty percent of what we spend goes to things we blow up, and the guys with houses on weird islands out there somewhere have to be laughing their tails off at this. This country does have a spending problem, based on what I can see because the guys making the decisions about how to spend money follow the back of a Post Toasties box, instead of a guy like Krugman.

Halliburton got a few hundred billion, tax breaks, and a thank you kiss from the low information voter, and you got stuck here on HuffPo. So sorry.

I'd take Krugman in a heartbeat, I can imagine it, I can embrace it. Bring it.

[mightyhead]

10:06 PM on 10/06/2011

And Halliburton is headquartered where now? Dubai. They ran away from this ship they helped sink, bags of money over their shoulders.

[Marysdude]

02:07 PM on 09/18/2011

pvbeachbum,

Read POLITIFACT. The one pundit with the highest accuracy rating for proving right in his prognostications is...drum roll please...Paul Krugman. To balance the scale the two pundits who get it wrong the most were George Will and Cal Thomas. If Krugman says it is a good idea to spend, it might behoove you to listen up. Lowering taxes, deregulating and cutting government jobs has proved to be a false fix for at least a hundred years...every time it has been tried.

PS: Krugman right 80% of the time

Will & Thomas right 20-30% of the time

Putting down Krugman might not be doing yourself any favors, as he's been known to jump on the President and other Democrats, along with his disdain for TeaPublican economic fixation on not raising taxes.

[dennis1943]

08:02 AM on 09/16/2011

Interesting that the Depresson was so named as an attempt to ameliorate the dreaded term "recession"...............so much for that attempt at spin.............

[GenghisSi]

09:39 PM on 09/15/2011

Got to give Krugman his props. Most Dems, like Obama, use smoke and mirrors to justify spending. Krugman has been saying that we need to flat out spend our pants off to stimulate (i.e. Alien Invasion ) I disagree with every aspect of his perspective but at least he's intellectually honest (unlike the rest of Dems).

[dsrhuff]

09:58 PM on 09/16/2011

If business isn't spending and people aren't spending how does the economy start moving again?

How did the U.S. drag itself out of the great depression? Lots of public works projects paid for by the government and then World War 2 which was even more massive spending by the government.

Our debt to GDP ratio now is still less than it was coming out of World War 2. The only crisis we have now is that tax rates on the wealthy and corporations are too low and in spite of what the cons say it does nothing for our economy.

[plcsail]

11:28 AM on 09/18/2011

Yes, the old conventional wisdom that WWII got us out of the Depression. WWII took millions out of the labor force and into the military to do economically non-productive(although existentially necessary) work. It also had millions more create products that were necessary to defeat Hitler's plans for world domination, but were designed only to be blown up. We could do it again, build roads, bridges, hospitals, sewer systems, and blow them up, and recover from this deep recession in the same manner, right???? Or not blow them up, and use them to our benefit? But, no, according to the GOP, that is wasteful government spending, bordering on that dreaded socialism.

[spud3]

05:17 PM on 09/15/2011

Welcome to the Bevis....Butthead and Krugman show.

[boot55555]

03:24 PM on 09/15/2011

never trust a man with a bad toupee

[Donald]

05:09 PM on 09/15/2011

never trust a comment from someone who can't tell the difference between a toupee and a bad comb-over

;-)

[Homercles]

09:08 PM on 09/15/2011

As far as comb-overs go, that one's pretty good.

[libramonster]

11:08 PM on 09/15/2011

Can we keep the wisecracks based on substance, rather than appearance? Let's try to act like adults, and not a bunch of juvenile hooligans.

[Patrick Serrano]

02:28 PM on 09/23/2011

I sincerely need information and informed opinion re: economy. I dislike folks who use this forum for nothing than to see their words in print.
I don't agree with everything the President says or does.
I'm a Viet Nam combat vet, 100%. So, I am invested in this conversation, as I have 2 kids out of college and one graduating. I worry about their future.
Paul K. makes sense to me and I like that he will strike at either Reps or Dems.
HE has an educated opinion. I'd rather have an educated person (ie. Obama over an [somewhat misquoted "All you C students...one day you, too, can become President! GW Bush] uneducated, unsuccessful, fear mongering person, as I have so far seen in the republican debates. Ranting, tearing down, not being specific, generalizing, does nothing for me.

[Lolotehe]

01:13 PM on 09/15/2011

I'm mildly surprised that no one picked up on Krugman's comment about the iPad, considering this story is under the "media" section of Huffpo. When I watched this interview, I was yelling at the screen, "Yes! You're right!"

We've become very easily distracted. The Internet lets us getting into comfy little echo-chambers, "social" media let us pontificate without listening (yes, I know. Thank you.), and we can scramble after badges rather than actually DO something.

Anyone talking about the last 30 years has surely noticed how important entertainment has become, right?

[Gypsyflame]

05:15 PM on 09/23/2011

Yep! I have been thinking something similar for many months--that as long as people have their iPhones and Blackberrries, have TV cable and Internet access, they think they are doing OK.

Plus, we have no culture other than pop culture it seems.

[Don Quixote]

12:29 PM on 09/15/2011

We were recovering, albeit slowly, until the neo-GOP took the House, and nearly the Senate, last November. We've reversed direction since then and are now inching our way back to the edge of the abyss.

[dxd22]

12:58 PM on 09/15/2011

yes, we remember that Summer of Recovery as Biden put it. Is there any other history you would like to revise?

[mistercrispyusa]

01:12 PM on 09/15/2011

Right now we'd be seeing decent growth, better jobs numbers and a more optimistic future if the legislation presented by Democrats had remained robust and conservatives hadn't obstructed every. initiative. the president. put. forth. But you keep thinking "obstruction" is the way to success for our nation, because it's worked so great thus far, dontcha think?

[HowthCastle]

07:06 PM on 09/15/2011

I remember 2009, just before the stimulus was passed. The economy shedding jobs at a rate of 200,000 per week. The job loss rate growing exponentially, as it had been for the previous year. The Dow at roughly 7,000 and falling rapidly.

[salmo]

02:49 PM on 09/15/2011

Inching? I think a whole bunch of people in the House have their collective feet on the accelerator and it's right to the floor. For what it's worth, the Obama White House is not doing its share either - couching their jobs package in a Republican framework where the trickle down mantra seems calculated to achieve the bipartisanship Obama apparently still craves instead of actually using the most efficient means to restart the economy.

[Shikamaru]

03:36 PM on 09/15/2011

I know... why is he so he!!bent on playing nice.... I just don't get it.

[MadeinUSAJOBS]

12:12 PM on 09/15/2011

What caused the Great Depression #2 starting in 2007 and continuing. Take out the government spending, wars, ss from current spending so you can compare apples to apples 1928 was year with greatest difference in top income and others like last year. Bush bailout of banks and Obama stimulus, probably kept all prices from deflating like homes. Stimulus growth is mostly gone.

Keep writing Mr. Krugman, we adults can take the truth.

It took 30 years for U. S. to decline and China to rise. Major structural changes are needed: Analyze:: Is it true jobs were created in U. S. by lower taxes and unfair trade agreements. Tax rates should go up for wealthy/corporations so it pays them to invest and take write-offs for plants, equipment and labor in U. S.. The U.S. has not had a positive outcome in trade.

Wealthy/Corporations can leave their money in investments and only pay 15% tax rate, why should they take chances and create jobs in U. S.??

Put tariffs on everything sold here but not made here including stuff made by our multi-national corporations.

Squeeze Multi national corporation profits by letting them sell their new stuff to their workers wherever they are.
Buy new MADE IN THE U>S> if you cannot find what you need, Buy used from your neighbor, small business, charity, craig's list or e-bay. Keep your money circulating locally not sent to China. It will create a few jobs here.

[Timothy Bladel]

03:18 AM on 09/15/2011

This is just more glaring evidence that Nobel has lost its mind. I think left wing and economist is a oxymoron, and do not bother attacking me, I do not care, I know, I know, this is a left wing site and you all are way smarter than everyone else. Now fix the country before Obama has to run for reelection. Did not think so, oh wait, I know again, its everyone fault but the liberals. maybe you should now contact "Attack Watch" and tell them about the lies I am spreading. What a self absorbed, intransigent thing to do Mr President, it looks desperate.

[Osusuki]

04:15 AM on 09/15/2011

Judging by your previous posts, I'd say that "do not bother attacking me" is the plaintive cry of someone who can dish it out, but can't take it. Call me anything you want. Sticks and stones will break my bones, but Milton Friedman and Ayn Rand will never have a functional neuron between them.

[Margo Arrowsmith]

08:22 AM on 09/15/2011

Do you consider all criticism of your comments and/or opinions to be a personal attack?  What is the appropriate way to disagree with you?

[Johnny Galileo]

03:35 PM on 09/16/2011

Most effectively, a flying elbow-drop from the top rope.

[terribyte]

02:31 AM on 09/15/2011

Recently a poll among business-owners pretty much set the record straight. When asked if regulations or taxes were at the root of their lack of confidence, they almost unanimously said no - then exposed the real culprit -- insurance costs -- which outweighed taxation and regulation combined as a deterrent to expansion or hiring.
Krugman is right, in so many ways.

[Timothy Bladel]

03:22 AM on 09/15/2011

Where did you get that from. Read some business mags or something, because only a liberal says that garbage. You really think Businesses want to pay more taxes, pay more in health care, and have more red tape on top on hiring more people, and throw in paying them people more. That sounds like a plan for success, then I wonder why it has not worked. Why are these businesses hold that two trillion you liberals love to talk about. You mean to tell me you really think all of them love hurting the economy, so in turn it can hurt their business. Do you not see the circling reasoning going on here.

[JohnnySomething]

06:41 AM on 09/15/2011

Of course, the insurance companies have nothing to do with it. Have you ever held a job? Companies -fear- giving people full time because of benefits. That's it, enemy number one. Insurance companies. Hold whatever opinions you please, but if you refuse to admit that insurance companies are a huge problem, then... wow.

[PalinEffect]

10:36 AM on 09/15/2011

I know many business owners when presented with a larger order due to the efforts of the sales department will tell the customer with the deep pockets to go take a flying Peter Falk. (satirical)

All that extra business means spending money on new workers or overtime or outsourcing at least. What sort of idiot would actually refuse business due to increasing minimum wage rules, etc.

Recent local semi skilled employment ad - Mandatory Overtime: they are paying 150% wages for hours over 40/week due to orders to fill..!

[Margo Arrowsmith]

08:24 AM on 09/15/2011

Thanks for the info.  Fanned, faved and badged. 

But what this says is that capitalism is the enemy of capitalism.  That tells us that regulating some aspects of capitalism is the best thing for capitalism.

[Kelly Nickell]

10:16 AM on 09/15/2011

What I find amazing about the whole laissez faire aproach to capitalism is this idea that it is the only thing within the human realm that can function fully without any outside interference or regulation at all, that it will "act in it's own self interest..."

Thus when the human variable is introduced, it blows it all up. Friedman never took into account the capacity of human greed, and short sighted mishandling of the "invisible hand."

I'm sure that if mankind didn't need a thousand page rule book for living, it also wouldn't need regulations in NASCAR, the NFL, or capitalism, which I suppose would also negate the need for capitalism or capitalists now possessing more wealth than than most of us can even wrap our head around.

And at the end of the day, really, how much more could the capitalists make in a fully regulated environment? Trust. The trust is broken, and if capitalists can't trust each other, then it's a capitalist eat capitalist world; the rest of us are just the fodder used in the battles.

Welcome to capitalism 5.1.2.3.a; a trust patch is available at the website, please update your account immediately, as it may have been already compromised and emptied by hackers...

[conchop]

12:10 PM on 09/15/2011

FDR smiles!

[Hitchcockcameo]

02:03 AM on 09/15/2011

That was spot on. I wish Colbert would have let Krugman expound a bit on solutions, though.

[Kathryn Talbert]

12:47 AM on 09/15/2011

I love me some Krugman.

[mflorian]

12:02 AM on 09/15/2011

Paul Krugman is a modern day Cassandra. He always knows what's going on but he's doomed never to be listened to.

[PMVB]

10:01 PM on 09/14/2011

Paul Krugman makes alot of sense to me. More power to his elbow + his voice.

[PalinEffect]

09:57 PM on 09/14/2011

First - New York is due to lose a seat in the House due to the 2010 census.
Guess which seat will be eliminated.

When Obama had to settle for his measly $800 Billion stimulus in 2009, with way too much of it the same stupid tax breaks for businesses, Krugman and Reich both said that's all she wrote folks, be prepared for half a decade of mostly recession.
Especially galling was having to settle for payroll tax breaks effective in 2010.

Then Obama could not get around the appalling number of filibusters thanks to the male model Scott Brown. No jobs bill. No debt ceiling bill. No FAA bill finally. No Federal budget passed without extreme extortion.

Outright treason of Republican leaders to do their very best to INCREASE unemployment and cruelly stick it to the unfortunate must be front and center.

Americans want a President who will start knocking some heads together instead of being stymied.