CNBC anchor Becky Quick needs everyone to know that she thinks Paul Krugman is wrong about the deficit.
"The only problem with Krugman's critique [of the push for a deficit reduction plan]? It is hard to find anyone who actually agrees with him," Quick wrote in an op-ed in Fortune on Friday, which took issue with Krugman's calls for the government to avoid slashing the deficit now. "Krugman's claim that there is no fiscal crisis isn't just laughable, it's downright dangerous."
Quick, co-anchor of the CNBC show Squawk Box, uses the fact the some CEOs disagree with Krugman as evidence that the Nobel Prize-winning economist's deficit stance is wrong. She then cites scary-sounding numbers about the deficit and concludes that the U.S. must reduce the national debt now.
Krugman has challenged many of these arguments. He noted in a January column that unlike families, governments don't have to pay back all of their debt; they just need to make sure that its "debt grows more slowly than their tax base." He also has noted that interest rates on Treasury bonds are at historic lows, showing that investors are not worried about the U.S.'s ability to pay off its debt.
Many economists agree that slashing government spending too quickly hurts economic growth. State and local austerity has deprived the economy of 2.3 million jobs over the past three years, according to a recent analysis by the Economic Policy Institute.
Some financial bloggers think that Krugman is spot on. Felix Salmon, finance blogger at Reuters, wrote on Thursday that CEOs' latest call for deficit reduction is "gross self-interest masquerading as public statesmanship," and that the economy needs "higher deficits, not lower ones" to combat high unemployment. Joe Weisenthal, deputy editor at Business Insider, also wrote in October that "Obama's deficits have done a lot of good" by helping dig the economy out of the recession.
Earlier on HuffPost:
The Koch Brothers
The Koch Brothers are known for being outspoken supporters of right-wing politicians. They have <a href="http://www.newyorker.com/reporting/2010/08/30/100830fa_fact_mayer">donated millions of dollars</a> to Republican campaigns, and now they are trying to influence votes in a new way: by <a href="http://www.huffingtonpost.com/2012/10/14/koch-romney-brothers-mitt_n_1965366.html">emailing 50,000 of their employees</a> urging them to vote for Romney.
Westgate Resorts CEO David Siegal recently <a href="http://www.huffingtonpost.com/2012/10/11/david-siegel-email-intimidate_n_1957743.html">emailed his employees</a> saying that if Obama wins the election, he will be forced to downsize his company. Siegal insists this statement was <a href="http://www.clickorlando.com/news/David-Siegel-Anti-Obama-email-wasn-t-a-threat-to-employees/-/1637132/16929310/-/5jsbkyz/-/index.html">not a threat</a> and that no employee would be fired for voting for Obama, WKMG Local 6 reports. Pictured: Siegel's famously unfinished mansion.
Jack DeWitt, CEO of frozen food company Request Foods, <a href="http://www.huffingtonpost.com/2012/10/25/jack-dewitt-mitt-romney_n_2017539.html?1351190686">endorsed Mitt Romney</a> and called President Obama a "complete failure" in his employee newsletter.
Scott Farmer, CEO of uniform manufacturer Cintas, recently <a href="http://www.huffingtonpost.com/2012/10/25/cintas-ceo-scott-farmer-obamacare-email_n_2019292.html">sent an email</a> to his employees saying that if Obama wins the election they may lose their healthcare and even jobs, urging them to vote for Romney.
Brooks Smith, CEO of gift card purveyor Incomm, <a href="http://www.motherjones.com/mojo/2012/10/romney-fundraising-email-ceo-incomm-brooks-smith">recently forwarded</a> a Romney campaign fundraising email to his staff, Mother Jones reports.
Mike White, the CEO of Rite-Hite, a manufacturer of loading dock equipment, told his employees that they would suffer <a href="http://www.huffingtonpost.com/2012/10/25/mike-white-ceo-email_n_2017372.html">"personal consequences</a>" if Obama is reelected.
Richard Lacks, CEO of car-parts manufacturer Lacks Enterprises, recently <a href="http://www.huffingtonpost.com/2012/10/08/lacks-enterprises-ceo-richard-lacks-mitt-romney_n_1947737.html">encouraged his employees</a> to vote for Romney, saying that another Obama term would mean higher taxes and lower wages.
Robert Murray, CEO of coal company Murray Enterprises, not only <a href="http://www.huffingtonpost.com/2012/10/04/bob-murray-mitt-romney-miners_n_1940563.html">put pressure on his employees</a> to vote for Romney, but also forced them to give up a day's pay to <a href="http://www.huffingtonpost.com/2012/10/09/murray-energy-romney_n_1950724.html">attend a Romney rally</a>. The Ohio Democratic Party is <a href="http://ohiodems.org/wp/wp-content/uploads/2012/10/Murray_Energy_Letter11.pdf">planning a criminal investigation.</a>
Arthur Allen, CEO of ASG Software Solutions, <a href="http://www.huffingtonpost.com/2012/10/20/arthur-allen_n_1992370.html">sent an email to employees</a> requesting that they donate to Romney's campaign, arguing that by doing so, his employees would be helping ASG and themselves.