"If anything, deficits should be bigger than they are"

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saxplayer00o1's picture
saxplayer00o1
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Joined: Jul 30 2009
Posts: 4061
"If anything, deficits should be bigger than they are"

"The point is that running big deficits in the face of the worst economic slump since the 1930s is actually the right thing to do. If anything, deficits should be bigger than they are because the government should be doing more than it is to create jobs.

True, there is a longer-term budget problem. Even a full economic recovery wouldn’t balance the budget, and it probably wouldn’t even reduce the deficit to a permanently sustainable level. So once the economic crisis is past, the U.S. government will have to increase its revenue and control its costs. And in the long run there’s no way to make the budget math work unless something is done about health care costs.

But there’s no reason to panic about budget prospects for the next few years, or even for the next decade. Consider, for example, what the latest budget proposal from the Obama administration says about interest payments on federal debt; according to the projections, a decade from now they’ll have risen to 3.5 percent of G.D.P. How scary is that? It’s about the same as interest costs under the first President Bush.

Why, then, all the hysteria? The answer is politics."

Link

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I looked at the faces I could use for this and couldn't find the one where he's banging his head against a metal post while yelling "No, no, no...make it stop.....please!"....so I had to use this one:Yell

nickbert's picture
nickbert
Status: Diamond Member (Offline)
Joined: Jan 14 2009
Posts: 1207
Re: "If anything, deficits should be bigger than they are"

Wow.

Krugman's got to be by far the stupidest smart person I've ever seen.

- Nickbert

Subprime JD's picture
Subprime JD
Status: Platinum Member (Offline)
Joined: Feb 17 2009
Posts: 562
Re: "If anything, deficits should be bigger than they are"

He looks like he has lost is mind in the photo

Subprime JD's picture
Subprime JD
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Joined: Feb 17 2009
Posts: 562
Re: "If anything, deficits should be bigger than they are"

He looks like he has lost his mind in the photo

goes211's picture
goes211
Status: Diamond Member (Offline)
Joined: Aug 18 2008
Posts: 1114
Re: "If anything, deficits should be bigger than they are"

Hard to believe he is considered a briliant economist.  It seems political hack would be a better description.

Subprime JD's picture
Subprime JD
Status: Platinum Member (Offline)
Joined: Feb 17 2009
Posts: 562
Re: "If anything, deficits should be bigger than they are"

Jeremy Siegel on the Resilience of American Finance. Professor, Wharton School of Business

Davos's picture
Davos
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Joined: Sep 17 2008
Posts: 3620
Re: "If anything, deficits should be bigger than they are"
saxplayer00o1 wrote:

 

I looked at the faces I could use for this and couldn't find the one where he's banging his head against a metal post while yelling "No, no, no...make it stop.....please!"....so I had to use this one:Yell

+1. If these people did anything like operate, fly, drive trains, ships, anything.... it would be a disaster.

hucklejohn's picture
hucklejohn
Status: Gold Member (Offline)
Joined: Dec 13 2008
Posts: 281
Re: "If anything, deficits should be bigger than they are"

To Paul Krugman and many on the left John Maynard Keynes and his economic theories are God and therefore any doubts about Keynesian Economics are simply summarily dismissed.

docmims's picture
docmims
Status: Platinum Member (Offline)
Joined: Jun 17 2009
Posts: 644
Re: "If anything, deficits should be bigger than they are"

What the hell?

You guys, I agree! 

We need to buy  10 Trillion dollars of solar panels and wind turbines from China with Federal Reserve Notes and then tell them to collect from the Federal Reserve when we turn it into a regular commercial bank.

Energy crisis solved!!     What?  What?Cool

joemanc's picture
joemanc
Status: Martenson Brigade Member (Offline)
Joined: Aug 16 2008
Posts: 834
Re: "If anything, deficits should be bigger than they are"

If you look in the dictionary for a definition of being led over a cliff, you will see a picture of Paul Krugman.

Tapani's picture
Tapani
Status: Bronze Member (Offline)
Joined: May 3 2009
Posts: 69
Re: "If anything, deficits should be bigger than they are"

Well, Krugman says nothing will save the US economy anymore, not even a perfect recovery.

Even a full economic recovery wouldn’t balance the budget, and it probably wouldn’t even reduce the deficit to a permanently sustainable level.

So he discusses the best uses of the last decade before TSHTF.

 

Thomas Hedin's picture
Thomas Hedin
Status: Platinum Member (Offline)
Joined: Jan 28 2009
Posts: 815
Re: "If anything, deficits should be bigger than they are"

We could stop running a deficite and start running a suplus.

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