Krugman writes: "And let nobody accuse the austerians of lacking a sense of romance; in fact, they've spent years looking for Mr. Goodpain."
New York Times columnist Paul Krugman. (photo: NYT)
Looking for Mister Goodpain
01 February 13
hree years ago, a terrible thing happened to economic policy, both here and in Europe. Although the worst of the financial crisis was over, economies on both sides of the Atlantic remained deeply depressed, with very high unemployment. Yet the Western world's policy elite somehow decided en masse that unemployment was no longer a crucial concern, and that reducing budget deficits should be the overriding priority.
In recent columns, I've argued that worries about the deficit are, in fact, greatly exaggerated - and have documented the increasingly desperate efforts of the deficit scolds to keep fear alive. Today, however, I'd like to talk about a different but related kind of desperation: the frantic effort to find some example, somewhere, of austerity policies that succeeded. For the advocates of fiscal austerity - the austerians - made promises as well as threats: austerity, they claimed, would both avert crisis and lead to prosperity.
And let nobody accuse the austerians of lacking a sense of romance; in fact, they've spent years looking for Mr. Goodpain.
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Tp get the economy going the government should force the banks to loan the money in small loans at interest rates of no more than 1/4% over what they are paying for the money. By small lots I mean loans of no more than $1.0 million to any one borrower.
The other; instead of buying $85 Billion per month of bonds with newly created funds, , they should simply take two months of the new money and refund everyones taxes from last year. That would stimulate the economy for sure, but it will never happen because the NYC bankers wouldn't make any money.
He constantly points out what is wrong with the big banks and their cronies in the white house.
Iceland is following the Kind of advice that is advocated by Krugman, stiglitz and Reich
Quoting MidwestTom:
MT, I think you have a couple of good idea's, but I don't know that Krugman is too far off the mark. For the economy to recover, unemployment must come down. Business won't hire until demand is up and wages will continue to fall as long as there are so many unemployed or under-employed. Any way you cut it, government, if we had an independent one, would have to step in.
As for the debt. Democrats should curb future spending and the Republicans should stop making an issue out of paying for what they have already spent. What novel idea's!
Iceland did rightfully allow failed banks to basically remain failed. But their banks were nowhere near the size of major Wall Street 'Banks' both in dollars and in relation to Iceland's Economy. They were actually not 'too big to fail' by such measures.
And
Iceland also realized that their consumers-in-ge neral were indeed too big to fail and so, they greatly increased their social welfare spending right along with their austerity efforts, which kept money circulating in their economy instead of fat in the pockets of the wealthy corporatists who drive the politics of austerity.
I agree with 'too big to fail' concepts. Allowing 'too big to fail' institutions to simply fail and fall like big black holes right out of an economy is a recipe for economic catastrophe.
Having said that, I also believe that the underlying 30 years of rampant and relentless Corporate-Conse rvtive Deregulation Schemes on behalf of financial institutions in America is what led to the existence of 'too big to fail' situations in the first place and it IS the underlying cause of the economic debacle that engulfed the world.
I also agree with Krugeman's austerity views on the very simple grounds that there is nothing larger than the ultimate 'Too Big To Fail' group--> THE AMERICAN CONSUMER.
Followed in size by European Consumers in our vastly connected world.
In the real world, Brad, over a billion beneficiaries of various austerity programs have banded (some say "huddled") together in "low cost suburbs" (others say "hopeless slums") surrounding such cities as Mumbai, Karachi, Mexico City, Cape Town, Nairobi, Boagta, Baghdad, Venezuela and Ghana.
These economic, architectural and cultural achievements are examples of what we Americans could achieve - even, in time surpass - if we were to put our minds to it; elect more tea-baggers; and implement the stringent austerity programs which the US-controlled IMF and World Bank impose on indigent debtor nations around the globe.
P. S. Austerity produces its very best and most spectacular results when implemented in 100% deregulated ,"business-frie ndly" economic environments.
And for info, Mr.MENSA, it ain't the poor who are dragging the rest of us to their unfortunate level: it's the greedy 1% that is pounding the rest of us down into the mud.
I pretty much expected the negative response. It amazes me how hard it is for some folks to recognize sarcasm. I had hoped I gave it away early when I first said austerity was an unqualified success then went on to qualify it's success.
OK, all you folks out there that believed my sarcastic post owe me a big apology, about $100 per apology seems about right. But, if all you can afford is to say your sorry, I guess I will have to accept that to.
Happy Groundhog Day!
go read some history. see what the unemployment rates were when the top tax rates were much higher than they are now
YOU paid for it, someone else benefits!
As far as I now...
You have to be an American Citizen to collect Social Security unless you meet rather strict work-visa qualifications while working for an American Employer.
A surviving foreign/nonciti zen spouse of an American or a foreign worker who met the standards mentioned and who paid into the system has to meet residency requirements before they can collect survivor benefits.
I know several Americans married to foreigners who will never collect any Social Security when their husbands pass on because they reside overseas and so, the wives therefore will never meet the residency requirements because it takes several years to qualify and regular time in the Staes afterwards.
I believe they will also not receive their husband's military pension payments either because they are not citizens.
Otherwise, there are a few million legal AND illegal immigrants who pay into the Social Security System every year who will never receive a dime back because of their status.
In fact, because FICA is automatically deducted, most undocumented workers pay into SS but cannot collect out. So the system actually profits.
Hmmmmm.... Sounds like Nantucket. Maybe a few of the other high-priced resort islands. You'll find some of these protected places in Europe, and in the West Indies,and close to the Persian Gulf. Very exclusive, dahling.
In the places that are really exclusive - and protected - most of the servants are seasonal help who live in barracks or the equivalent.
Foreigners are very popular as servants. When they're no longer wanted, send the home. And, of course, it's easy to cheat and manipulate foreign workers. When they complain about working conditions, salaries, etc., round them up for deportation. (Very easy to do, especially if the workers don't have the right papers.)
"Hmmmmm.... Sounds like Nantucket. Maybe a few of the other high-priced resort islands. You'll find some of these protected places in Europe, and in the West Indies,and close to the Persian Gulf. Very exclusive, dahling.
In the places that are really exclusive - and protected - most of the servants are seasonal help who live in barracks or the equivalent.
Foreigners are very popular as servants. When they're no longer wanted, send the home. And, of course, it's easy to cheat and manipulate foreign workers. When they complain about working conditions, salaries, etc., round them up for deportation. (Very easy to do, especially if the workers don't have the right papers.)"
Also known as slavery.
Austerity is a smashing success. The results speak for themselves . . . when/where implemented and carried through p-roperly, it has created thousands of billionaires and mega-millionair es. You may even be one of those hard woking, newly affluent entrepreneurs. All things considered, the statistical odds (that you are one of those lucky ones) are one-in 500,000,000 (five-hundred-m illion) , but hat the hell! Somebody' has to win, right?
And why do you think that your chances of being one of the winners are any less than those of the the Ivy League economists and rising stars on Wall Street?
Think positive! The price of good caviar is down to less than $100 and ounce. With austerity, you can make it Baby. ,
Like sex, austerity is dirty only when performed properly.
If building safe bridges a make work program then tell it to the folks that have lost their lives or been injured as a result of unsafe structures. Every bridge or building has a life. For bridges in the Northeast it's typically 30-40 years after which time if they are not rebuilt or properly maintained they becaome an accident waiting to happen.
I just hope that my fellow Brits have the sense to turf him out next election; he has a tiny majority in the House of Commons with the Lib-Dems, never a reliable lot.
Cameron (who ran as a "moderate" then turned coat) and Thatcher could chum along nicely with Cantor, Ryan and their cyphers, including the idiot Tea Buggers.
First off, sorry I hit the red button -I meant to hit the green but my digits are increasingly unreliable (I'm developing essential tremor, which is a right bugger for a Flamenco Guitarist). I would go to "The Independent" website and check them out. They might be a good start. they are certainly anything but saccharine.
I use the BBC as my internet home page as I like to follow rugby and regional affairs but find them very careful and guarded but good on many international affairs you'd never even get a glimpse of in the US. And they are still PBS's main source of international happenings. The "BEEB's" chief US correspondent Mark Mardell is so stilted and status-quo oriented he must have a cricket stump up his keester.
I'm honestly unaware of anything like RSN though, as I often pass this forum on to politically oriented friends in the UK, France and Spain and they are quite impressed, as they tend to associate US news with the major owner-media (plus they get to see some of the reactionary twits who infest the site betimes). Remember though, the BBC has always been a great vehicle for futuristic programming.
Good luck and ""Doumo arigatou gozaimasu ".
COMMENT: I thought that some of Cameron's people were trying to take the United Kingdom back to the 1850s. High Church combined with imperialism and raw greed. More smog for London.
"I just hope that my fellow Brits have the sense to turf (Cameron) out next election; he has a tiny majority in the House of Commons with the Lib-Dems, never a reliable lot...."
COMMENT: Yeah, we got some Lib-Dems on the American side of the Atlantic. As you say, "never a reliable lot."
Despite all of its faults, I wish that America had something that looked like the Labor Party in its prime.
Inspite of being a war criminal, Thatcher, Bush, and Blair fell over themselves wanting to be Churchillian to justify their own dirty little wars.
Go figure!
Actually this from the BBC today. http://www.bbc.co.uk/news/business-21294084. Eat yer hearts out reactionary, ignoramus Obama-haters
New subject: I asked you before, with no answer: what was your son's - the SEAL 's - BUDS Class? Nobody doubts your claims, but in this day of cheap talk and legal "Stolen Valor", it doesn't hurt to check our bona fides.
The economic disaster was the result of the Republicans' passion for deregulation. It is senseless to blame Obama for the Republican-domi nated House's obstinacy at cleaning up their mess. The Republican political strategy is to refuse to cooperate, then point the finger when nothing can get done.
If Obama *were* to figure out a way to stimulate the economy by executive order, the Right would scream, "Tyrant! Dictator!"
It was a half-hearted bill, just like he 2009 stimulus, but at least it stood for what was needed: government investment in the country's future.
I don;t blame Obama for losing that fight -- just for not continuing to fight. And with his dismal record on war, civil liberties, and staffing his camp with Wall Street apologists, it's impossible to believe he's anything but a corporatist.
1/ Keynesian Austreity, can be simultaneously executed with Stimulus for "Trickle up" Not the "trickle down" of bribed econ. experts working both sides. Recent USA Deposed expert admitted $3,800/hour fees. Or (50 csuch ases on file).
But I suspect this idiot Krugnam a wolf in sheeps clothing in the henhouse left, chortelling 'trickle down' for profit to their 1%'er clients.
2/ PRC is doing this this year's budgets, as Australia did with REDS scheme of the 1969-75's. Take people from the Unemployment welfare bill, pay them cents more as labor humans, for infrastructure projects cleaning up the past sins, using Local Governments engineers FOC, very low machine & material cost and no profit to Subcontract 1%'ers revenue collection of hoards.
See: REDS Reports Australian Govt. 1977. http://trove.nla.gov.au/work/27188810?q=Regional+Employment+Development+Scheme&x=125&y=18&c=book&versionId=32768258
I have long worried who's side Krugman is really on, better rely on Robert Reich for truth of economics.
See:- http://www.cmra.com/litigation.php
I's broad shoulders and won't cry, so have at me guys ok.
Spell & Typos are because that's all you are worth of my time & input also.
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