Paul Krugman: Spend More To Fix The Economy 'It's Really That Simple'

Rolling Stone:

The basic issue, says Krugman, is a lack of demand. American consumers and businesses, aren't spending enough, and efforts to get them to open their wallets have gone nowhere. Krugman's solution: The federal government needs to step in and spend. A lot.

Read the whole story at Rolling Stone

Comments

[bullthull]

10:28 PM on 05/03/2012

Mitterand 1980 - full social spending - rampant inflation then .........................AUSTERITY

[morbius]

12:31 PM on 05/16/2012

Then you are your own worst enemy.

[bullthull]

01:14 PM on 05/16/2012

 

That reflexive line –used so liberally without thought - is
so tired and obnoxious it can only be chirped by a parrot.

In this instance you use at as the response to facts and
this only demonstrates how mindless it is. No I am not the enemy of myself no
more than is someone that eschews personal gluttony . Get a brain and perhaps a
life will follow.

[Y3rMawm]

06:17 PM on 05/03/2012

"We've been here before, Krugman argues, during the Great Depression, and the actions that got us out of that crisis will get us out of this one, too.

So Kruggybear wants us to b0mb Europe and Asia back into the Stone Age...again.

Why are we still listening to this guy?

[ruolivert]

06:21 PM on 05/03/2012

Because he says things like "we can have the economy back on track in 18 month." and Americans love quick, easy, and painless solutions to big problems

[Y3rMawm]

08:59 PM on 05/03/2012

Indeed.

[bullthull]

10:31 PM on 05/03/2012

Helicopter Ben had been flying non stop- the fed holds so much BS canabalized debt the Chinese are on a rampant buying spree while the dollar is still good. Bye Bye USA.
We had a good run.

[Y3rMawm]

10:47 PM on 05/03/2012

Indeed we did. Little left to do, but to pick up the pieces and start again.

[anti-fascist]

05:10 PM on 05/03/2012

To the right wing Krugaman is saying Government must spond to get us ort the depression then control its spending.

Now shut up

[anti-fascist]

05:05 PM on 05/03/2012

The problem with government spending is it is done by criminals for criminals

Before we spend more, we need to redefine the term treason and pass an ethics bill for Congress

[anti-fascist]

05:03 PM on 05/03/2012

Beats the alternative- Folding

[Vinkaye]

03:02 PM on 05/03/2012

The President and his financial team erroneously believed that if they funneled money into the TBTF's, it would make it's way down through the economy. Only problem is they put no stipulations on that free cash and therefore the banks just used it to increase their own profits.

[bc906]

02:59 PM on 05/03/2012

more spending is just kicking the can down the road, it won't lead to sustainable growth

[BBackSoon]

04:10 PM on 05/03/2012

You didn't read the article did you?

[wsdave]

05:23 PM on 05/03/2012

There was no article, just an extended ad for his book.

[airforcevet43]

02:34 PM on 05/03/2012

Re.th.ugs initially put up the UK argument of austerity, but now that the UK has seen stagnant or regressive growth and would pine for our meager 2-3% growth, re.th.ugs need another straw man for their arguments.

Pay attention america.....b/c as the re.thu.gs use to say we could be greece or spain, but we're not, we're America and let's stay that way on the positive track not the regressive one.

Obama/Biden 2012'

[Y3rMawm]

06:03 PM on 05/03/2012

Nobody ever promised that austerity would not come with some pain. A healthy forest must burn once in a while.

[ruolivert]

06:10 PM on 05/03/2012

Problem is the austerity isn't geared to making the economy healthier, just the banks. This whole austerity vs stimulus argument is flawed because both options will be carried out by politicians who have shown time and time again they will do what is bset for their friends, for their careers, and for their campaigns.

[Roylbiv]

02:15 PM on 05/03/2012

LOL. Drink more alcohol to cure the hangover. Krugman is a big-time globalist, one of the "white shoe boys"- Harvard, Princeton, Yale... bullets, banks, and bombs.

No, there isn't a 500 pound gorilla in the room named debt. Krugman wouldn't admit there was a pink elephant in the room if it was sitting on his face.

[BBackSoon]

04:11 PM on 05/03/2012

You have idea what you are talking about do you?

[Trustfunded1]

12:26 PM on 05/03/2012

Money printing isn't tied to oil and commodity inflation or margin compression.
And it doesn't squash growth in Paul Krugmans world.

[ruolivert]

06:22 PM on 05/03/2012

According to him printing money IS growth.

[demisfine]

12:08 PM on 05/03/2012

The sad thing is that EVERYONE knows this to be true.
The GOP cannot allow anything to help the economy improve, because they have the stated goal of ending President Obama's presidency.
The nation is collateral damage.
They are willing to tank the economy to try to regain power.
Should that happen, all the things we know must be done will be done - in their name, not his.
There is not one statesman left in the GOP.
Not one.
Olympis Snowe would rather leave DC than remain because of the decisive and uncooperative spirit Mitch McConnell has promoted.

[OhhBoy]

01:51 PM on 05/03/2012

Last time I checked Preident Obama was a Democrat. He has the Democratic Senate. Why is this a "the GOP made me do it" type of problem?

[BBackSoon]

04:12 PM on 05/03/2012

So you admit you were not paying attention in late 2009 and early 2010?

[SageBeguile]

05:12 PM on 05/03/2012

FILIBUSTER!!!

Don't know how it Works!!!! Learn!!!

[wsdave]

05:27 PM on 05/03/2012

Well, it's SORT of true, but only sort of. Krugman is delusional if he thinks for a moment that the government will ever stop spending.

[econ1]

12:07 PM on 05/03/2012

In 2002 Dr. Krugman said that Greenspan needed a housing bubble to counteract the internet bubble's collapse and by keeping interest rates low and encouraging debt the government inflated housing costs with the result we all know. Certainly spending a lot now will make us feel better for awhile...it always does, but the telling line may be:

"It's something to worry about over the next decade,"

Yes, spending within ones means is less fun than not...and it is very painful to go from spending way beyond ones means to cold turkey.

[BBackSoon]

04:13 PM on 05/03/2012

cold turkey is what is killing the eurozone.

[sonoffestus]

11:49 AM on 05/03/2012

The USA has about 20 more years to go before it has found it's new equilibrium.

Millions of unskilled and semi skilled workers will never find replacement jobs that will pay what they used to make. Many mid-level employees will never see the money they used to make. The American Dream will not be that of one's parents.

The world's economic and political power base is shifting and Americans will have to realign itself to the new reality. For many, it will be very tough. For those well educated will be fine.

Folks better stop thinking about "wanting their country back" and better start thinking how they will live and prosper in this new world.

Live small and enjoy a large life......................SOF.

[wsdave]

05:35 PM on 05/03/2012

I don't know if you own a hammer, but you sure hit the nail on the head!

The previously declined empires (Europe) all have about 7-10% unemployment on a regular basis (for many decades, in fact), and now that our empire is joining them in decline, there is NO reason to suspect that we'll end up any different.

The smart money is heading for greener pastures.

[morbius]

12:39 PM on 05/16/2012

And the authors of this new reality?? Wall Street Banks and Corporations. Would anyone be surprised to see a new civil war?

[wsdave]

11:47 AM on 05/03/2012

Since the deficit/debt don't matter, why does anyone even bother reporting it?

And why aren't we printing up money so that the government can employ EVERYONE at $150,000/year, since deficits/debt don't matter?

That would turn the economy around in a month.

[BBackSoon]

04:14 PM on 05/03/2012

It is always all or nothing with you types isn't it?

[wsdave]

05:30 PM on 05/03/2012

Well, unless you can explain why it shouldn't be, then why not?

[ruolivert]

06:12 PM on 05/03/2012

There's never a real response to this arguement. If demand is what's needed why not just print money endlessly? What's the difference between $1 trillion and $2 trillion, 3, 4, 5?

[fisch123]

07:29 PM on 05/03/2012

Have you heard of inflation? Devaluation? I didn't think so.

[wsdave]

07:35 PM on 05/03/2012

Of course I have: The question is, why hasn't Krugman?

[Lance Manling]

11:03 AM on 05/03/2012

Why should be believe that the government would spend money wisely for infrastructure projects instead of windmill plants?

That is wishful thinking for this administration.

[BBackSoon]

04:14 PM on 05/03/2012

I am all for windmill plants.

[fisch123]

07:33 PM on 05/03/2012

F/F for your many comments on this story.

[fisch123]

07:33 PM on 05/03/2012

Yes why would we every want to invest in energy production that helps us reduce our dependence on fossil fuels.

[Lance Manling]

10:25 AM on 05/04/2012

Throwing money at the problem won't make it happen faster.