Paul Krugman: U.S. Likely To Follow Europe 'Down The Path To Ruin'

New York Times:

Can the euro be saved? Not long ago we were told that the worst possible outcome was a Greek default. Now a much wider disaster seems all too likely.

Read the whole story: New York Times

Comments

[golfan1]

10:56 AM on 12/04/2011

I thought I would never see the day where Krugman would admit that socialism doesn't work. The only way we would follow the same path as Europe is if Obama is re-elected for a second term and the house becomes lead by Nancy Pelosi again along with Harry Ried remaining the majority leader in the Senate that is a tripple treat or wami that will diffenately lead us on the same path as Europe.

[johnmorgan]

06:14 PM on 12/04/2011

The Republicans are the main ones pushing for austerity in this country, which is what Krugman says we should not do. You remember that they are the ones who suddenly decided they were concerned about the deficit the day that Obama became president (they were not concerned about it while Bush was president at all).

[M Grey]

04:49 PM on 12/18/2011

There are no Republicans in Europe. And any so called austerity in Europe is the same vane as "we'll reduce the deficit 1 Billion over 20 years". Until they actually start firing people in these countries it's just more of the same as the Democrats want here.

[mamacat]

04:36 AM on 12/04/2011

Two points.

First, the cumulative GDPs of Greece, Portugal, and Ireland, the three countries often said to be most likely to default on their loans, is only $741 billion. By comparison, that is less than half the GDP of California, which for 2011 is estimated to be $1.96 trillion. It surprises me that the European common currency is so fragile that three small countries can cause it to self-implode.

Secondly, the whole idea of the Euro makes no sense, in my opinion. How can their be collective responsibility when their is no collective power to set limits on how far taxes can be cut, or on how far debt can be assumed? (Greece slashed it tax rates by about 40%, and now is broke.) That is like holding me responsible for my neighbors' debts. It just doesn't make sense.

[mamacat]

06:13 AM on 12/04/2011

Sorry for the spelling mistakes. Time for bed.

[Michael II]

08:29 AM on 12/05/2011

Aren't there sections of Alabama that are also bankrupt? How is California these days, and how about Detroit? The idea that Europe is leading the US on this is a bit odd as civil servants in Ireland and Portugal are still getting paid (and Ireland had a growth forecast of 1.1% earlier this year). Admittedly, the Greek civil servants are in a different situation. Nonetheless, some 42% of international payments are carried out in euros.

[M Grey]

04:52 PM on 12/18/2011

Kaliphornya is cutting services while Moonbeam wants people to vote themselves more taxes. Smart Democrat. "I didn't raise taxes - they wanted more taxes"

[Carolab]

02:54 AM on 12/04/2011

Evidently, something's not working the way it's supposed to. And here is why: it is becoming clearer by the day that saving the banks is not the same as saving the people, upon whom increasing austerity is unleashed to pay for ... saving the banks. We have a choice to make: either we save the banks, or we save our societies. Which are falling apart as we speak on account of the costs of saving an already deeply bankrupt financial system.

[Francois Bergeron]

04:20 AM on 12/04/2011

Saving the banks was the right thing to do. Had to be done. But. They should be monitored. Closely.

[Carolab]

04:24 AM on 12/04/2011

The TBTF banks must be taken down one at a time.

[conservgirl8]

05:14 PM on 12/18/2011

Our society has failed because of government on all levels. Government has perpetuated this poverty and decay on their own by telling people that they will be rescued if they hit a bump in the road. I'm not saying we should have bailed out the banks, frankly, I would liked to have sen most of them fail. Ever hear of, only the strong survive? Well, I believe that applies to humans as well as banks. The longer people stay on welfare the longer they don't work. I wonder how many would not get out there and work if there were zero entitlements. The natural instinct in man is to survive and they would.

[wishescometrue]

01:43 PM on 02/13/2012

Oh dear. You are one of the kick 'em to the curb types. No, actually many of the people who go hungry actually Do Die. At the curb.

[Totto]

07:07 PM on 12/03/2011

Another useful NYT article: http://www.dalinvestment.com/

[VoteThemAllOut]

05:49 PM on 12/03/2011

Let's see, Paul K. finally recognizes that the borrow and spend doesn't work. Have to wonder what his next revaltion will be?

[AlsoSarah]

06:59 PM on 12/03/2011

How did you get that from the article. He said "spend".

[VoteThemAllOut]

10:47 AM on 12/04/2011

Believe he said this country would fail for the same reasons that the EU is going to fail which is directly related to countries like Greece spending mor than they take in so they have to borrow.

[AFRescue143]

04:23 PM on 12/03/2011

It is time to call things as they really are. The GOP are Traitors and Communist Sympathizers.

The GOP openly supports companies that Outsource jobs to China. That causes Americans to lose jobs and the American Economy to lose. These actions help Chinese Workers and the Chinese Economy. China is a Communist Country.

SO AGAIN. The GOP are Traitors to the United States and Communist Sympathizers. If these people want to wave their Bibles and Wrap Themselves in the American flag we need to call them out for their actions.

More jobs in the USA would put people back to work, that would give people money to spend, allow businesses to do more in sales and profits, that would help Wall Street and the Wealthy would get even MORE money. So I really wonder WHY Corporations and the Wealthy are not behind putting people back to work and creating jobs. When the US has a stable economy the Corporations and the Wealthy make MORE MONEY for longer periods of time.

[wishescometrue]

01:45 PM on 02/13/2012

Do ya think!

[ntmessage]

10:46 AM on 12/03/2011

The Reagan way and the Clinton way created the most jobs, raised the standard of living for the most people and for the least cost of any system, ideology or academic theory. Those are the facts. Why promote things that do not work?

[James Fun]

02:41 PM on 12/03/2011

The Clinton way and Reagan way.
2 things I never thought I would hear in the same sentence....
Interesting though.
At least the system worked back then.
Me thinks I would add "With Newt's assistance" to the Clinton way.

But an interesting way to put it.

[ntmessage]

10:44 AM on 12/03/2011

There he goes again! First he says we are not spending enough! Now we are on the road to European ruin! These are most certainly exclusive statements. Though we wanted to be more like Euro land! Well now the left should know why Krugman is not taken seriously outside of a narrow slice of Economics, unrelated to debt, deficit, borrowing or growing the economy.
For all that understand those Scandinavian countries (as well as Canada) have oil economies. That is why they are in better shape. The socialist economies are in deep trouble because the government is too big a part of the economy. That is a fact. Germany? They pay nothing for their defense.
Right now we are 3 years from Italy and not for the reasons Krugman asserts. It is the Debt and the deficit as a % of GDP. There is no other measure, including more taxing that fixes this, except for fiscal responsibility.
Plus everything that Obama chooses to do, deplete the SS trust fund (payroll tax cut), and stop Pipelines, Plants and so many other private sector job generators, just makes the problem even worse.
Why are we still giving this guy a mouthpiece at all? His way has failed us.

[Francois Bergeron]

04:22 AM on 12/04/2011

economics is an unclear science. Complicated. You need to hear from all sides and then try and make an educated guess about possible impossibilities. :o)

[ntmessage]

07:02 PM on 12/04/2011

When the debt to GDP is 100% and the deficit to GDP is 10% no rocket science or swag is needed.

[wishescometrue]

01:47 PM on 02/13/2012

Nope.

[MissinAmerica]

07:09 AM on 12/03/2011

How Goldman Sachs Helped Greece Mask its True Debt

http://www.spiegel.de/international/europe/0,1518,676634,00.html

[MissinAmerica]

06:49 AM on 12/03/2011

This seems relevant to the article & bears repeating~

An extremely well-made clip, featuring economists who get it — and have signed a statement in solidarity­..

300 Economists Who Stand With Occupy Wall Street.
http://econ4.org/statement-on-ows

(Brought to my attention by the awesome moveon.org­)

[James Fun]

02:42 PM on 12/03/2011

Are these the same "scientists" who stand with Gore ???

[AFRescue143]

04:19 PM on 12/03/2011

your IQ ranks right up with your number of fans.

[James Fun]

02:52 PM on 12/03/2011

Moveon awesome ???
Guess that depends on your definition of "awesome"...

You probably think this rag known as HP is "awesome" too...

Great idea about eliminating lobbyists though.
But then that would pretty much end the Democratic party as we know it. Goodbye BO too...

[wishescometrue]

01:49 PM on 02/13/2012

So HP is a rag, huh? Then go somewhere else.

[pup sydney]

04:11 AM on 12/03/2011

Unless Americans wake up and instead of calling other countries piig. ( have you no shame civility or insight?) finally understand how Reaganism bush ism gingrichand thE sold out political apparatus has sold them out we can talk and write to each other forever but nothing will change. OWS at least has forced people to think even if for a second

[seeksthetruth]

02:44 AM on 12/03/2011

If the GOP has their way, we will.

[BigBearcatBill]

02:36 AM on 12/03/2011

Time to start checking if this country can survive on its own for a few years in case world commerce shuts down for a while. Can we feed everyone here? Keep everyone warm in the winter? Defend our Country? I think China will try a power play and we may have to cut business ties with them if they want to run the world. Can we manufacture what we need again? Are we dependent on China and others we may not be able to trust? Time to prepare for the worst.

[AZreb]

11:37 AM on 12/03/2011

At this time, we consume more than we produce and that is a recipe for economic ruin.

[ConservativeChampion]

12:06 AM on 12/03/2011

If we keep listening to Krugman, we will be there rather quickly.

[K August]

04:00 AM on 12/03/2011

I'd rather listen to someone who won the Nobel Prize for Economics than conservatives in Congress who have told us for 30 years that the 1% need more and more tax cuts.

All that's done for is shift the wealth to the top and all that borrowing to make up for the shortfall in revenues caused by their endless tax cuts has added 11 Trillion to our national debt.
The Bush cuts alone added 4 Trillion to our debt according to the CBO.
It's time to reverse things before everyone is reduced to a pauper and the top have every penny of our countries wealth.

[James Fun]

02:47 PM on 12/03/2011

.

There's that stupid "award" nonsense again...

Is this the same one Obama got for doing nothing ?
The same one Gore got for scamming you all the way to a new Santa Barbara mansion ??
The same award created by the gentleman who invented a chemical that has killed more people then pretty much anything else ???

Nobel lost its credibility years ago.

Man, lefties love slobbering each other with "awards", then trying to pretend it means something to the rest of us.

[James Fun]

11:21 PM on 12/02/2011

I've been reading HP for 1 day and wanna puke.
Cant believe some More On paid 315 million for this filth.

And its ironic all the anti-capitalist rantings that go on here, considering it just got sold from right under you in a BUSINESS deal. Dont you commies feel like a who-ore?

Fact it was AOL that bought this rag says it all. Arent they still pushing coffee mug disks offering free 56k Internet ???

[ConservativeChampion]

12:08 AM on 12/03/2011

The only thing I can add to that is "I wish I would have thought of it."

The only problem is that I cannot say anything Left Wing or I start itching and breaking out in hives.

[James Fun]

12:40 AM on 12/03/2011

Champ, I feel your pain.
And wonder where 341 fans came from on ths board ?

I initially came here reading some diatibe on why we should be paying more taxes (fairness they called it).
I tried to show the error of their ways and was SWAMPED by a mass of loonie left idiocy. Its as if there is this village of unemployed tent dwellers here just waiting to pounch on any conservative who dares express an opinion here.

This rag clearly demonstrates the old saying - liberals are the most tolerant open minded people you'll meet, as long as you agree with them.

I wont waste my time.

[ColoradoPete]

12:12 AM on 12/03/2011

Too true.........