The Insanity of the Discussion on the Economy

by Jul 11, 2011Liberty & Economy2 comments

I previously observed how Paul Krugman recently argued that the U.S. government must not cut spending and balance the budget because running up endless debt that can never be repaid is good for the economy. You can go read what he said for yourselves, but that’s it in a nutshell. The insanity continues. A New […]

I previously observed how Paul Krugman recently argued that the U.S. government must not cut spending and balance the budget because running up endless debt that can never be repaid is good for the economy. You can go read what he said for yourselves, but that’s it in a nutshell. The insanity continues. A New York Times editorial criticizes Obama for saying:

Also to put our economy on a stronger and sounder footing for the future, we’ve got to rein in our deficits and get the government to live within its means, while still making the investments that help put people to work right now and make us more competitive in the future.  As I mentioned, we’ve had some good meetings.  We had a good meeting here yesterday with leaders of both parties in Congress.  And while real differences remain, we agreed to work through the weekend and meet back here on Sunday.

The sooner we get this done, the sooner that the markets know that the debt limit ceiling will have been raised and that we have a serious plan to deal with our debt and deficit, the sooner that we give our businesses the certainty that they will need in order to make additional investments to grow and hire and will provide more confidence to the rest of the world as well, so that they are committed to investing in America.

Taking up Krugman’s argument that cutting spending will result in loss of jobs in the public sector and apparently presuming that factor overrides all other considerations, the Times editors say “It is hard to understand … why Mr. Obama has adopted the language of his opponents in connecting the economy to the debt.” Thus the Times criticizes Obama for suggesting there will need to be budget cuts and that the government must get the deficit under control, saying “pulling hundreds of billions of dollars out of the economy at precisely the moment when the spending is needed most”. Moreover, the Times blames Republicans for opposing the “federal stimulus program” that “ended too soon”.

Connecting the economy to the nation’s debt? How absurd! Everybody knows the U.S. economy has absolutely nothing to do with it’s enormous debt! Everybody knows that in times of economic trouble, more government spending, not less, is the answer! Everybody knows that going even further into debt is the key to getting a troubled economy going. Everybody knows that the government can juts borrow more money to pay off its debt, that the Federal Reserve can just print more money out of nothing to “stimulate” the economy!

What’s that you say? We are burdening future generations with an enormous debt burden and destroying our children’s future by massing a debt that can never be repaid? Nonsense! Such foolishness! Don’t be ridiculous.

What’s that you say? The Fed’s “quantitative easing” economic “stimulus” program hastens the decline in the value of the dollar, resulting in a loss of buying power and effective decline of real wages for those who actually have jobs? Rubbish! Such absurdity! Don’t make me laugh.

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About Jeremy R. Hammond

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2 Comments

  1. Dori Smith

    Thanks Jeremy, insanity is the right word to use. Just this a.m. we heard NPR’s Cokey Roberts clammoring about the fact that Obama needs to “be an adult” and “rein in the children” in Congress. This is being portrayed as a battle of epic proportions having to do with a kind of identity crisis in Washington. Will Republicans be able to stand up to the whole idea of tax increases and will Americans tolerate their demands to reduce Medicare and Medicaid? How will that play in upcoming elections. That story is far off the mark. The truth is that the government has been moving more in the direction of tolerance for privatization. We see public officials combining efforts with private companies and investment groups as a way to generate growth. Again, the emphasis on bailing out the economy by bailing out business..This is the reality exposed in a 2010 piece in The Nation by Amy Traub. I reread it this morning with great interest. The public sector lay offs began last year in force: http://www.thenation.com/article/war-public-workers The Economic Policy Institute reports that 180,000 local government employees have been laid off since August 2008, while furloughs have become a fact of life for public workers across the country. Much bigger cuts lie ahead: Education Secretary Arne Duncan warns that as stimulus funding dries up, as many as 300,000 teachers and other school personnel could lose their jobs this year to budget cuts.

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  2. Qurban Ali,

    The World Economic are disturb due to 11/9 worrong , & Failure Project. The Economic Crisis are start from 1980’s War in Afghanistan against USSR, through Mujahidin. After this case the World Papulation Crisis also become in Muslim, & other Countries of the World, TWENTY MILLION PEPOLE are Killed or Injured…The CIA, RAW, MOSSAD,KHAD, PERCHAM, SHOALLAH, & KGB. Agents. are WORKING for devide Balochistan from Pakistan, as a socalled The GREATER BALOCHISTAN. If Pakistan will be Finnished, then we can say that They were will be succeded. THE PAKISTAN NOT SO EASY TO BROKEN by THESE Agencies, are Agents. EASY COME, EASY GO, DON’T WORRY, BE HAPPY, Its a Pakistan, We can say only GOD helps Pakistan. PAKISTAN ZENDABAD, Down with USA, Down with UK, & Down with Israel. This decade is their Ends, they can’t stop this Natural proces. The” ISLAMIC NEW WORLD ORDER “is on Way, also The ” NEW ISLAMIC REVOLUTION MIDDLE EAST ” are Completed. The strong grip on World ECONOMIC are in their ( muslim countries of the world. ) hands. The European, & American’s are FAILURE Countries of the World. The Christean Zionist, World Anarchist, Jewish Lobby, Freemasion, ( out of Date org.) Jewish World Conf, ( sadist org.) Lion Club, Jaycees, Rotary Club, Watch Tower, Awake, Black Water, ( Americans ) White WATER, ( JEWS ), & Holocaused are totally “FAILURES” Org. of the Century. Thankx.

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