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writing for godot

Idiot Krugman strikes agai in retreat

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Written by Rob Carter   
Saturday, 22 February 2014 18:48
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Gleapman ~ Hey Mr. Krugman, stop wasting this important space pounding the old drums of the stimulus should have been more and focusing on the deficit...
BluePlanet ~ One thing you can always count on from the GOP: Collective Amnesia.

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Rob Carter ~
Paul Krugman again shows just how far wrong economic theorists can be through their absolute lack of practical experience with cause & effects ,they treat effect not cause as so many GP Doctors reach for their " the magic bullets" only to fail to fix the cause and the disease spreads afar and for worse debt.

PK Trying to Justify his "Stimulus" and "Anti-Austerity" echo! Then he moves to crawl out of the economic failure he proposed, sanctioned and vilifies the opponents to his views, even to this day.

PK missed the point then and still does "Such cash loan based QE's etc. are only ever a short term value that can not repeat every year from 2008 to 2014." that "Year 1 they can reach consumers and investors, after that only wealthy opportunity casino type investors can access the loans. Unemployment precludes the consumer stretching credit card consumption wage subsidy with loans, as the repayment viability is lost if new employment to repay cards doesn't eventuate in the short time.

PK says in error "a temporary boost both by having the government directly spend more and by using tax cuts and public aid to boost family incomes, inducing more private spending" PK can't read Keynes where he says by infrastructure projects to sap the unemployment, producing catch on squandered infrastructure maintenance etc., at very nominal cost to the fed at all. REDS schemes employ from Dole list thus Fed recovers 50% of wage cost from Welfare not paid to continue once the unemployed is so occupied for a wage. They further recover material and equipment cost from finally recompensing the infrastructure maintenance taxes & depreciation budget misdirected in the past to unrelated entitlements and capitalist subsidies etc. The remaining 50% of labor cost to fed REDS is recovered in part from future tax on the extra employment so created and a balance from Local Governments due project sharing contribution. Thus fed spends no dime to temporarily employ "STIMULATED" infrastructure constructors & long term employ some permanent operators but more important end the degradation caused by budget misuse of the infrastructure rightful depreciation provision etc, for voter appeal & PR rhetoric in inappropriate "stimulation" where "Austerity" was earlier indicated.

PK always reads it wrongly in practical terms , his theories are for a different base time. Interest rates didn't fall because of "STIMULUS" They fell through lack of viability in upper class loans for production expansion (no consumer disposable income growth worldwide, USA middle class near extinction, leaving only future rentable foreclosures among the former owners now in near poverty class needing low interest for lower rents. His "excess savings" is an admission of growing disparity of classes with 14%+ 2013 GDP equity growth for the 1% and shrinking disposable income, loan collateral crash and no cash, credit, income prospect growing lower 70% impecunious, while the 1% scrooge Mc Duck swims in vats of useless gold currency saves.

PK silly it's "trickier to find positives in QE's etc" because after the first period effective temporary wins, one can't call 6 years "temporary relief" it's gift, welfare, survival etc. There just aren't any positives except for the 1% with access to massive unused fiat funds at cheaper than ever borrowing rates for very few viable consumption, rentals, productivity growth projects.

PK negative stimulus is Austerity PK can't even bring himself to calling a spade a spade, for him it's a shovel or worse a trowel. He attacks Europe rather that examine USA fairly as comparison and will see the difference in a few years when USA debt cripples them and EU debt is manageable, PK will hide under a rock too mean to apologize even.

PK bullshit he has admitted the USA stimulus and non-austerity has not increased employment, domestic consumption or better health, education & Infrastructure replacements, so how can he insist they would have done so for EU?

PK Said "All the evidence, then, points to substantial positive short-run effects from the Obama stimulus. And there were surely long-term benefits, too: big investments in everything from green energy to electronic medical records." PK grasping at straws of little value crap.

PK question was .."so why does everyone ..[…].. except my students, — believe that the stimulus was a failure? Because the U.S. economy continued to perform poorly — not disastrously, but poorly — after the stimulus went into effect". PK straws again, USA would be worse without the 1% employing more efficient new automations to lay off more workers is some how positive?

PK is right USA is coping through a show of rhetoric, fiat money, and dreamland cover-ups & promises.

Now OK Cop-out "This is not, by the way, a case of making excuses after the fact. Regular readers know that I was more or less tearing my hair out in early 2009,warning that the Recovery Act was inadequate — and that by falling short, the act would end up discrediting the very idea of stimulus. And so it proved." PK his inadequate over 6 years if accommodated by more useless stimulation would now be unmanageable debt surely.

PK was one of the main proponents of this theory he now calls a wrong one. Obama was smarter than PK whereas some stupid readers have suggested Obama should have appointed PK in the principal Economic planning/budget tasks and had Obiwan heard them USA would be 90 not 40 down the poverty scale and bankrupt like a 3rd World underdog.

PK won't admit you just can not improve employment unless you first improve consumption of the added production they would cause employed rather than welfare drains.

~~~~~~~~~~~~Above comments are Based on following story critique~~~~~~~~~
The Stimulus Tragedy
NYT ~ OP-ED COLUMNIST Paul Krugman. ~ FEB. 20, 2014


Five years have passed since President Obama signed the American Recovery and Reinvestment Act — the “stimulus” — into law. With the passage of time, it has become clear that the act did a vast amount of good. It helped end the economy’s plunge; it created or saved millions of jobs; it left behind an important legacy of public and private investment. Rob Carter: PK Trying to Justify his "Stimulus" and "Anti-Austerity" echo! Then he moves to crawl out of the economic failure he proposed, sanctioned and vilifies the opponents to his views, even to this day.

It was also a political disaster. And the consequences of that political disaster — the perception that stimulus failed — have haunted economic policy ever since.

Let’s start with the good the stimulus did.

The case for stimulus was that we were suffering from a huge shortfall in overall spending, and that the hit to the economy from the financial crisis and the bursting of the housing bubble was so severe that the Federal Reserve, which normally fights recessions by cutting short-term interest rates, couldn’t overcome this slump on its own. The idea, then, was to provide a temporary boost both by having the government directly spend more and by using tax cuts and public aid to boost family incomes, inducing more private spending. Rob Carter: PK missed the point then and still does "Such cash loan based QE's etc. are only ever a short term value that can not repeat every year from 2008 to 2014." that "Year 1 they can reach consumers and investors, after that only wealthy opportunity casino type investors can access the loans. Unemployment precludes the consumer stretching credit card consumption wage subsidy with loans, as the repayment viability is lost if new employment to repay cards doesn't eventuate in the short time.

PK says in error "a temporary boost both by having the government directly spend more and by using tax cuts and public aid to boost family incomes, inducing more private spending" Rob Carter: PK can't read Keynes where he says by infrastructure projects to sap the unemployment, producing catch on squandered infrastructure maintenance etc., at very nominal cost to the fed at all. REDS schemes employ from Dole list thus Fed recovers 50% of wage cost from Welfare not paid to continue once the unemployed is so occupied for a wage. They further recover material and equipment cost from finally recompensing the infrastructure maintenance taxes & depreciation budget misdirected in the past to unrelated entitlements and capitalist subsidies etc. The remaining 50% of labor cost to fed REDS is recovered in part from future tax on the extra employment so created and a balance from Local Governments due project sharing contribution. Thus fed spends no dime to temporarily employ "STIMULATED" infrastructure constructors & long term employ some permanent operators but more important end the degradation caused by budget misuse of the infrastructure rightful depreciation provision etc, for voter appeal & PR rhetoric in inappropriate "stimulation" where "Austreity" was earlier indicated.

Opponents of stimulus argued vociferously that deficit spending would send interest rates skyrocketing, “crowding out” private spending. Proponents responded, however, that crowding out — a real issue when the economy is near full employment — wouldn’t happen in a deeply depressed economy, awash in excess capacity and excess savings. And stimulus supporters were right: far from soaring, interest rates fell to historic lows. Rob Carter: PK always reads it wrongly in practical terms , his theories are for a different base time. Interest rates didn't fall because of "STIMULUS" They fell through lack of viability in upper class loans for production expansion (no consumer disposable income growth worldwide, USA middle class near extinction, leaving only future rentable foreclosures among the former owners now in near poverty class needing low interest for lower rents. His "excess savings" is an admission of growing disparity of classes with 14%+ 2013 GDP equity growth for the 1% and shrinking disposable income, loan collateral crash and no cash, credit, income prospect growing lower 70% impecunious, while the 1% scrooge Mc Duck swims in vats of useless gold currency saves.

What about positive evidence for the benefits of stimulus? That’s trickier, because it’s hard to disentangle the effects of the Recovery Act from all the other things that were going on at the time. Nonetheless, most careful studies have found evidence of strong positive effects on employment and output. Rob Carter: PK silly it's "trickier to find positives in QE's etc" because after the first period effective temporary wins, one can't call 6 years "temporary relief" it's gift, welfare, survival etc. There just aren't any positives except for the 1% with access to massive unused fiat funds at cheaper than ever borrowing rates for very few viable consumption, rentals, productivity growth projects.

Even more important, I’d argue, is the huge natural experiment Europe has provided on the effects of sharp changes in government spending. You see, some but not all members of the euro area, the group of countries sharing Europe’s common currency, were forced into imposing draconian fiscal austerity, that is, negative stimulus. Rob Carter: PK negative stimulus is Austerity PK can't even bring himself to calling a spade a spade, for him it's a shovel or worse a trowel. He attacks Europe rather that examine USA fairly as comparison and will see the difference in a few years when USA debt cripples them and EU debt is manageable, PK will hide under a riock too mean to apologize even. If stimulus opponents had been right about the way the world works, these austerity programs wouldn’t have had severe adverse economic effects, because cuts in government spending would have been offset by rising private spending. In fact, austerity led to nasty, in some cases catastrophic, declines in output and employment. And private spending in countries imposing harsh austerity ended up falling instead of rising, amplifying the direct effects of government cutbacks. Rob Carter: PK bullshit he has admitted the USA stimulus and non-austerity has not increased employment, domestic consumption or better health, education & Infrastructure replacements, so how can he insist they would have done so for EU?

All the evidence, then, points to substantial positive short-run effects from the Obama stimulus. And there were surely long-term benefits, too: big investments in everything from green energy to electronic medical records. Rob Carter: PK grasping at straws of little value crap.

So why does everyone — or, to be more accurate, everyone except those who have seriously studied the issue — believe that the stimulus was a failure? Because the U.S. economy continued to perform poorly — not disastrously, but poorly — after the stimulus went into effect. Rob Carter: PK straws again, USA would be worse without the 1% employing more efficient new automations to lay off more workers is some how positive?

There’s no mystery about why: America was coping with the legacy of a giant housing bubble. Even now, housing has only partly recovered, while consumers are still held back by the huge debts they ran up during the bubble years. And the stimulus was both too small and too short-lived to overcome that dire legacy. Rob Carter: PK is right USA is coping through a show of rhetoric, fiat money, and dreamland cover-ups & promises.

This is not, by the way, a case of making excuses after the fact. Regular readers know that I was more or less tearing my hair out in early 2009,warning that the Recovery Act was inadequate — and that by falling short, the act would end up discrediting the very idea of stimulus. And so it proved. Rob Carter: PK his inadequate over 6 years if accommodated by more useless stimulation would now be unmanageable debt surely.

There’s a long-running debate over whether the Obama administration could have gotten more. The administration compounded the damage with excessively optimistic forecasts, based on the false premise that the economy would quickly bounce back once confidence in the financial system was restored. Rob Carter: PK was one of the main proponents of this theory he now calls a wrong one. Obama was smarter than PK whereas some stupid readers have suggested Obama should have appointed PK in the principal Economic planning/budget tasks and had Obiwan heard them USA would be 90 not 40 down the poverty scale and bankrupt like a 3rd World underdog.

But that’s all water under the bridge. The important point is that U.S. fiscal policy went completely in the wrong direction after 2010. With the stimulus perceived as a failure, job creation almost disappeared from inside-the-Beltway discourse, replaced with obsessive concern over budget deficits. Government spending, which had been temporarily boosted both by the Recovery Act and by safety-net programs like food stamps and unemployment benefits, began falling, with public investment hit worst. And this anti-stimulus has destroyed millions of jobs. Rob Carter: PK won't admit you just can not improve employment unless you first improve consumption of the added production they would cause employed rather than welfare drains.


In other words, the overall narrative of the stimulus is tragic. A policy initiative that was good but not good enough ended up being seen as a failure, and set the stage for an immensely destructive wrong turn.
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