Krugman Spells It Out In Plain English
Permalink +Sun, Apr 28, 2013, 9:30 pm // John Servais
Paul Krugman has an outstanding aticle in Monday's New York Times. You can read it online here. It is short and is a masterpiece of brevity on a complicated subject.
Paul Krugman has been the clearest voice on economic policy in these years since the Bush economic crash in 2008. Five years ago we entered a deep recession and our Congress in DC has done exactly the wrong things for four years. Krugman explains it all.
He also writes a blog on the New York Times that is a must-read for this writer. He has been consistent and right for years. We should encourage our congressional representatives and senators to read him - and heed his advice. We would end this stagnating recession.
Comments (3)
To add a comment, click here to login or register.
Scott Wicklund // Mon, Apr 29, 2013, 6:32 am
The Colbert Report hones into this topic well:
+ Link
But don’t expect Rick Larsen or Susan Delbene to help turn back the austerity cuts advocated by President Obama. They are “New Democrats” who wrote a letter urging Obama to cut programs and raise taxes just as soon as the election was over.
Craig Mayberry // Thu, May 02, 2013, 6:21 am
A couple of comments about the Krugman article.
First, the government has not “cut” anything. The federal government will spend more this year than last year and will spend more next year than this year. The term cut under government is not a cut as we normally think of. If I am making $50,000 a year and my boss gives me a 10% raise to $55,000 and then comes back a month later and says things have changed and he can only give me a 5% raise instead then based on government terminology my spending just got cut by $2,500. The reality my spending is increasing from $50,000 to $52,500 so I have more money next year even though I claim my salary got cut. The definition of austerity is a little bizarre and the US, Spain, Italy, etc are not truly following austerity measures because government spending is not going down, it is just a lower increase then what they would like.
Second, GDP = consumption + government spending + investment + net exports. In isolation it is easy to look at that and say if we have more government spending then GDP will increase. The problem is that ignores potential relationships between the variables and assumes they all operate in isolation. What if the high government deficits causes people to consume less because of fear of the future and businesses to invest less because they are concerned about the deficits. This could translate into more government spending having an adverse impact on consumption and investment and therefore lower GDP growth. In turn, getting the deficit under control could bring confidence to households and business and they may consume and invest more and offset the lower government spending. No one can really say what the interactions are, it is far to complicated, but to dismiss that as a possibility is naïve on Krugmans part.
Third, a lot of people claim that the government cannot be compared to individual households and Krugman as offered a variety of reasons including the government can print money and households cannot. That spending and income are not related at the economic level but it is at the household level. I personally think the comparison is much closer to reality then Krugman cares to acknowledge. Government cannot borrow forever without ramifications. We are “printing” almost $1 trillion a year to fund the government and economy, that has a negative impact on economy and will slow growth. A household cannot run deficits forever with ultimately have to declare bankruptcy. I see now scenario where the government can run deficits forever without having serious economic implications. 5 years ago on this blog I wrote and article comparing the economy to the Yellowstone fires of 1989. 5 years later I was proven correct and probably the most insightful article or comment I have ever made on this blog.
I do not think there are any simple answers to the current economic problems. I think Krugman does have some good points that simply cutting government spending (if it were actually cut) would have short term negative impact, but continuing down the same path is going to stagnate income for years to come which means there is no way to grow our way out of it. We are in deep trouble economically. There is not going to be enough economic growth to whittle away at unemployment and continuing to print nearly a trillion dollars a year for the forseeable future is not a recipe for success either.
Tara Nelson // Thu, May 23, 2013, 8:21 am
Paul Krugman is my celebrity crush.
Krugman Spells It Out In Plain English
Sun, Apr 28, 2013, 9:30 pm // John Servais
New York Times columnist, Paul Krugman, has a masterful short article that explains why austerity is not working.3 comments; last on May 23, 2013
Obamacare and the Coming (Not Again?) Wealth Transfer
Wed, Mar 06, 2013, 10:05 am // Dick Conoboy
You are not likely to escape the coming transfer of $billions from your pocket to the health insurance industry. You will get little, if anything, in return.
4 comments; last on Apr 05, 2013
Landmark Enterprises
We Need a Goods and Services Tax - Like Canada
Fri, Dec 28, 2012, 12:33 pm // John Lesow
A comparison of U.S. and Canadian attitudes and policies for taxes and fiscal integrity. By a Canadian citizen.7 comments; last on Feb 03, 2013
Are you in foreclosure?
Wed, Dec 12, 2012, 11:04 am // John Servais
If you or a friend are in foreclosure, or an attorney defending someone, then hopefully you already know about this. If not... here it is.2 comments; last on Dec 19, 2012
Riley teases us with 2016
Sat, Nov 24, 2012, 11:09 am // John Servais
Wherein that local political junkie, Riley Sweeney, has written up a comprehensive analysis of 2016 U.S. presidential election.0 comments
Election Night at the VFW
Wed, Nov 07, 2012, 12:21 am // John Servais
A light and short take on the Democratic Party celebration at the VFW Post meeting hall. And a heavy bit on national politics.
18 comments; last on Nov 10, 2012
Election Predictions
Wed, Oct 31, 2012, 7:29 am // Riley Sweeney
Here's your shot at fame and glory as a political pundit
4 comments; last on Nov 02, 2012
Feds Should Delete Anti-Islam Video
Mon, Sep 17, 2012, 9:45 am // John Servais
Precedent is plentiful of the Feds censoring free speech and videos - but double standard is protecting anti-Islam film.6 comments; last on Sep 20, 2012
Riley interviews Rep. Rick Larsen
Thu, Aug 23, 2012, 3:16 pm // John Servais
Over at the Political Junkie, Riley Sweeney has posted a long and interesting interview with our U.S. Congress Rep Rick Larsen2 comments; last on Aug 25, 2012
The Plea of Julian Assange
Sun, Aug 19, 2012, 10:09 pm // John Servais
Wikileaks founder spoke from a safe open window to the people of the world. His words are important to the future of democracy and freedoms.
4 comments; last on Aug 21, 2012
Is NOAA Reporting False Higher Temperatures?
Sun, Jul 29, 2012, 11:17 am // John Servais
New report suggests U.S. weather stations reporting higher temperatures because NOAA has poorly managed sensors and caused false higher readings.11 comments; last on Aug 06, 2012
That fuss in Wisconsin over Walker
Wed, Jun 06, 2012, 5:45 pm // John Servais
The recall of Wisconsin governor Scott Walker failed - failed big. Here is another 2 cents worth of opinion - from a Wisconsin conservative.
3 comments; last on Jun 07, 2012
Congressional Candidates and Overstreet’s Town Hall
Sun, Feb 19, 2012, 5:37 pm // Riley Sweeney
Riley at The Political Junkie attends a forum of Congressional Candidates, and a town hall meeting in Lynden0 comments
The Big Business of Breast Cancer
Wed, Feb 08, 2012, 9:14 am // Guest writer
There’s no profit in searching for causes, and we know there's no real cure. But there's big money in the detection and treatment of breast cancer.
2 comments; last on Feb 11, 2012
SOPA - A Step in Destroying Democracy
Thu, Jan 19, 2012, 1:17 am // John Servais
NWCitizen.com went black for Wednesday, Jan 18, 2012, as a protest against proposed legislation, SOPA and PIPA. Here is what was posted.1 comments; last on Jan 19, 2012
Why SOPA is so terrible
Tue, Jan 17, 2012, 7:28 pm // John Servais
On Wednesday, thousands of websites will go dark to show opposition to SOPA. I will be posting a single article explaining who SOPA is so bad.0 comments
Jack Petree, Olympia, the Whatcom Council and Obama’s Inner Circle
Wed, Jan 11, 2012, 9:04 am // Riley Sweeney
Latest from the Political Junkie on a variety of subjects
7 comments; last on Jan 16, 2012
Dan Pike Issues Order to Evict Occupy Bellingham
Tue, Dec 27, 2011, 12:55 pm // Riley Sweeney
Riley questions Pike's timing, and Occupy's choice of tactics2 comments; last on Dec 28, 2011
Rick Perry, Can We Talk?
Tue, Dec 13, 2011, 10:58 am // Riley Sweeney
Riley has a conversation with Rick Perry
2 comments; last on Dec 16, 2011
From the Political Junkie: Is Mitt Romney actually Arrested Development’s Michael Bluth?
Fri, Nov 11, 2011, 9:44 am // Riley Sweeney
Mitt Romney is darn lucky
0 comments
Why is Guy Fawkes attending Occupy Wall Street?
Sat, Nov 05, 2011, 5:14 am // Riley Sweeney
Remember, remember the fifth of November . . .0 comments
Sergeant Thomas talks to the NYP
Sat, Oct 29, 2011, 2:00 am // John Servais
Sergeant Shamar Thomas talks sense to the NY police on the streets after they beat peaceful demonstrators - and they are zombies. Nobody home. Mindless cops.
10 comments; last on Nov 04, 2011
The Political Junkie Occupies Bellingham
Sat, Oct 08, 2011, 2:29 pm // Riley Sweeney
Riley reports on the Occupy Bellingham Rally
11 comments; last on Oct 13, 2011
From the Political Junkie: The Presidential Primary and Florida
Thu, Sep 29, 2011, 7:46 am // Riley Sweeney
Riley looks at Florida cutting in line
1 comments; last on Sep 30, 2011
From the Political Junkie: We need Godfrey
Mon, Sep 26, 2011, 1:00 am // Riley Sweeney
My Man Godfrey and the Forgotten Generation
4 comments; last on Sep 28, 2011
Wall Street protests ignored by news media
Sun, Sep 25, 2011, 11:11 am // John Servais
Wall Street protests have been ongoing for over a week - but U.S. corporate news media have been covering them up.
1 comments; last on Sep 26, 2011
The Political Junkie stares at Redistricting Maps
Wed, Sep 14, 2011, 10:34 pm // Riley Sweeney
Riley examines the legislative and congressional redistricting.
1 comments; last on Sep 18, 2011
From the Political Junkie: One Day for Labor?
Mon, Sep 05, 2011, 8:19 am // Riley Sweeney
Riley writes for the local Dems about Labor Day
3 comments; last on Sep 07, 2011
“Coal on a Roll” - in depth from onearth.org
Thu, Sep 01, 2011, 2:46 pm // John Servais
George Black is comprehensive on the Powder River coal basin, BNSF, and the shipping of coal from Cherry Point and Longview.
6 comments; last on Sep 07, 2011
How it is done - courtesy of James Fallows
Fri, Aug 19, 2011, 2:13 pm // John Servais
Rick Perry hardly breaks his shuffle as Bank of America promises to support his campaign for president.1 comments; last on Aug 21, 2011
From the Political Junkie: A Sobering Reminder at the Old Settlers Parade
Sun, Jul 31, 2011, 2:17 pm // Riley Sweeney
Riley talks about the sobering reminder of our fallen soldiers at the Old Settler's Parade
2 comments; last on Aug 01, 2011
From the Political Junkie: Entitlement Reform?
Tue, Jul 26, 2011, 9:45 am // Riley Sweeney
Riley tackles "Entitlement Reform" as a bad frame
8 comments; last on Aug 01, 2011
The Debt isn’t the issue . . .your approach is!
Wed, Jul 06, 2011, 12:40 am // Riley Sweeney
Riley rants about the economy, and the solutions to our ills
6 comments; last on Aug 02, 2011
From The Political Junkie: Obama’s Re-election Stories
Sun, May 15, 2011, 1:16 pm // Riley Sweeney
Riley Sweeney outlines the three storylines defining Obama's Re-election Campaign
2 comments; last on May 17, 2011
From a Political Junkie: A Sweetener for Old School Politics
Sat, Apr 09, 2011, 11:50 am // Riley Sweeney
Riley Sweeney highlights some Old School Politics
1 comments; last on Apr 10, 2011
From a Political Junkie: Thousands Gather for International Labor Rally
Mon, Apr 04, 2011, 4:00 pm // Riley Sweeney
Riley Sweeney reports on April 2nd Labor Rally
9 comments; last on Apr 09, 2011
The (political) world according to Karp
Sat, Mar 05, 2011, 5:20 pm // Guest writer
By guest writer Bo Richardson. Karp believes the two-party goal is to make sure your ballot only offers a choice between two hacks - reformers need not apply.9 comments; last on Mar 08, 2011
From The Political Junkie: Harry Reid works it Old School
Fri, Feb 25, 2011, 10:17 am // Riley Sweeney
Riley Sweeney gives a short post about Harry Reid's old school politicking2 comments; last on Feb 27, 2011
From The Political Junkie: Legalization? It is time.
Mon, Feb 21, 2011, 5:17 am // Riley Sweeney
Riley Sweeney talks about why it is time for legalization of hemp
1 comments; last on Mar 29, 2011
Egypt - one writer’s perspective
Wed, Feb 02, 2011, 9:22 am // John Servais
Egypt - just one citizen voicing his perspective on what is happening. Speaking freely.4 comments; last on Feb 07, 2011
From a Political Junkie: State of the Union Bingo
Mon, Jan 24, 2011, 4:33 pm // Riley Sweeney
Riley Sweeney briefly shares his thoughts on the State of the Union Address
1 comments; last on Feb 05, 2011
Violence was legitimized by Sarah Palin
Sun, Jan 09, 2011, 11:56 am // John Servais
Sarah Palin's violence-laced rhetoric shares the blame for the Arizona massacre.
18 comments; last on Jan 12, 2011
From a Political Junkie: All I want for 2011 is my two front teeth
Mon, Jan 03, 2011, 5:49 am // Riley Sweeney
Riley Sweeney talks about his 2011 Legislative Wish List10 comments; last on Jan 08, 2011
From a Political Junkie: Obama’s Excellent Tax Bargain
Mon, Dec 27, 2010, 5:29 am // Riley Sweeney
Sweeney explains how President Obama bought off his opponents and scored a solid victory.12 comments; last on Dec 29, 2010
Learn the Facts from Foreign Media
Wed, Dec 08, 2010, 2:21 am // John Servais
WikiLeaks' Julian Assange faces rape charges. The facts are revealed only by foreign news media.14 comments; last on Dec 15, 2010
From TWO Political Junkies: Our 2012 Cattle Call
Mon, Dec 06, 2010, 5:39 am // Riley Sweeney
Riley Sweeney and his brother, Devlin, take a look at the 2012 Republican Candidates
0 comments
Wikileaks is serving Democracy
Wed, Dec 01, 2010, 8:59 pm // John Servais
Updated Dec 3. I support WikiLeaks and their release of government documents so citizens can vote intelligently.
12 comments; last on Dec 07, 2010
From a Political Junkie: Abstaining from Abstinence-Only
Mon, Nov 29, 2010, 5:16 am // Riley Sweeney
Riley Sweeney examines facts vs beliefs and comprehensive sex education
4 comments; last on Dec 01, 2010
TSA protecting us from terrorists
Sat, Nov 27, 2010, 7:19 pm // John Servais
TSA puts young mother with a bag of breast milk through an illegal and unbelievable process.
5 comments; last on Nov 29, 2010
Underestimationism
Fri, Nov 05, 2010, 3:00 pm // Paul deArmond
What went wrong in the mid-term election, why, and what we can expect now.3 comments; last on Nov 16, 2010
The Way I See It - En Garde
Wed, Jul 21, 2010, 5:42 am // Ham Hayes
“We have lots of robberies.” As I reported last week, that was the apocalyptic statement by the investigating officer to our recent plight in St. Petersburg.0 comments
The Way I See It - From Russia with Love
Wed, Jul 14, 2010, 6:17 pm // Ham Hayes
Ham's final post on his travel comments from Russia.
0 comments
Climate and transparent process
Wed, Jul 14, 2010, 12:52 pm // John Servais
The Atlantic Monthly has an article on Climate gate that every Enviro true believer should read. Some healthy skepticism is very needed.1 comments; last on Jul 17, 2010
Please sign the anti-whaling petition
Fri, Jun 18, 2010, 12:31 am // John Servais
Let's help get one million signatures on the anti-whaling petition.1 comments; last on Jun 21, 2010
Shame on Israel
Mon, May 31, 2010, 8:43 pm // John Servais
Israel is becoming a rogue state. It is showing a disdain for International law and world opinion.13 comments; last on Jun 03, 2010
From a Political Junkie: Justice Stevens’ Retirement
Mon, Apr 12, 2010, 5:55 am // Riley Sweeney
Riley Sweeney talks about his favorite justice and who the President should appoint
0 comments
Questions on Health Care
Sat, Mar 27, 2010, 5:45 am // Craig Mayberry
Some questions on health care reform to our Congressional delegation.0 comments
Intraprising Government
Fri, Mar 05, 2010, 11:30 am // Craig Mayberry
A novel approach to government monoplies0 comments
Aging: The Times Are A-Changin’
Sat, Feb 27, 2010, 7:22 pm // Guest writer
By guest writer Nanette Davis, Ph.D. Elder care is a growing crisis nationally and locally.1 comments; last on Mar 02, 2010
The Way I See It - Beware AHD
Wed, Feb 24, 2010, 6:00 am // Ham Hayes
Hockey night in Canada may be replaced.2 comments; last on Feb 25, 2010
New Links
Reconveyance ChallengeSalish Sea Org.
the Oatmeal
Current Interest
Community Wise BellinghamFriends of Whatcom
Lummi Island Quarry
Reconveyance Challenge
Whatcom Elections
Publisher Recommended
GlobalPostLeague of Women Voters
Paul Krugman - economics
Sweeney Politics
the Oatmeal
Local Blogs & News
Bellingham HeraldBham Herald Politics Blog
Bham Politics & Economics
Bob Sanders
Cascadia Weekly
Citizen Ted
Ferndale Record
Friends of Whatcom
Get Whatcom Planning
HamsterTalk
Jack Petree
KGMI
Latte Republic
League of Women Voters
Lynden Tribune
MikeatthePort
Northern Light
Sweeney Politics
Twilight Zoning
Wally Wonders
Western Front - WWU
Whatcom Watch
Local Causes
Bellingham Police ActivityChuckanut Community Forest
Chuckanut Mountains
Citizens of Bellingham
City Club of Bellingham
Community Wise Bellingham
Conservation NW
Cordata & Meridian
Facebook Port Reform
Futurewise - Whatcom
Jail - local mega plans
Lake Whatcom
Lummi Island Quarry
N. Cascades Audubon
NW Holocaust Center
RE Sources
Reconveyance Challenge
Reduce Jet Noise
Salish Sea Org.
Save the Granary Building
Transition Whatcom
WA Conservation Voters
Governments
BellinghamPort of Bellingham
Skagit County
US - The White House
WA State Access
WA State Elections
WA State Legislature
Whatcom Auditor
Whatcom County
Whatcom Elections
Weather & Climate
Cliff Mass Weather BlogClimate Audit
NW Radar
Two day forecast
Watts Up With That? - climate
Leisure
Adventures NWEdge of Sports
Entertainment NNW
Famous Internet Skiers
Sailing Anarchy
Good Links
Al-Jazeera onlineAlaska Dispatch
AlterNet.org
Antiwar.com
Arab News
Asia Times
Atlantic, The
Common Dreams
counterpunch
Crosscut Seattle
Daily Kos
Daily Mirror
Doonesbury
Drudge Report
FiveThirtyEight
Foreign Policy in Focus
GlobalPost
Guardian Unlimited
Gulf News
Haaretz
Huffington Post
Innocence Project, The
Intrnational Herald Tribune
James Fallows
Jerusalem Post
Joel Connelly
Juan Cole
Le Diplo
Media Matters
Michael Moore
Middle East Times
MoveOn.org
Nation, The
New American Century
News Trust
NMFA
numbers
Online Journal
Palestine Daily
Palestine News
Paul Krugman - economics
Personal bio info
Portland Indy Media
Progressive Review
Project Vote Smart
Reuters
Sea Shepherd
Slate
Talking Points Memo
the Oatmeal
Tom Paine.com
truthout
War and Piece
Washington Votes
WikiLeaks.ch
ynetnews.com
NwCitizen 1995 - 2007
Early Northwest CitizenInternet At Its Best
TEDQuiet, Offline or Dead
Bellingham RegisterCarl Weimer
David Hackworth
N. Sound Conservancy
No Leaky Buckets
Northwest Review
Orcinus
Post-Oklahoman Confessions
Protect Bellingham Parks
The American Telegraph
The Crisis Papers