Monday, January 26, 2009


Paul Krugman, recent Nobel winner in Economics makes this counter argument. Check it out.


JIm said...

At least Krugman’s first paragraph was correct other than the “Good Faith” nonsense. He ignores FDR’s double dip depression brought on by rasing taxes and tariffs. FDR’s alphabet soup public works programs still left us with approx. 15% unemployment 1936. He ignores the massive government spending of the “New Frontier” combined with Vietnam that brought on the stagnation and stagflation that was compounded by Nixon’s wage and price controls and Carter’s total ineptitude. He further fails to recognize the economic expansion that followed the tax cuts of JFK, Reagan, and George W. There is one big government spending program that worked to pull us out of a recession. In 1940, massive armament spending began to support our friends in Europe and in the process along with the draft, pulled us out of the Depression. Krugman is also right that Obama won and the plan will be substantially his. Hopefully, senate Republicans will show some spine and filibuster, in order to make it more of an immediate corporate tax cut to create jobs immediately.

Paul Krugman

“As the debate over President Obama’s economic stimulus plan gets under way, one thing is certain: many of the plan’s opponents aren’t arguing in good faith. Conservatives really, really don’t want to see a second New Deal, and they certainly don’t want to see government activism vindicated. So they are reaching for any stick they can find with which to beat proposals for increased government spending.”

JIm said...

You have got to love San Fran Nan for her clear economic thinking.

Speaker of the House Nancy Pelosi boldly defended a move to add birth control funding to the new economic "stimulus" package, claiming "contraception will reduce costs to the states and to the federal government."

Pelosi, the mother of 5 children and 6 grandchildren, who once said, "Nothing in my life will ever, ever compare to being a mom," seemed to imply babies are somehow a burden on the treasury.