Krugman Blames Lack of U.S. Recovery on ‘Austerity’

by Feb 13, 2013Liberty & Economy0 comments

Our wise government overlords know better than we do how best to spend our money

Austerity is to blame for the lack of recovery, according to Paul Krugman. He writes in his blog that “austerity did, indeed, undermine recovery”, and to prove it, he shows a graph of the ratio of government spending to the Congressional Budget Office’s estimate of potential GDP.

FRED data

Well, gosh, would you look at that! It’s austerity! And since there is austerity, and since there is no recovery, therefore it obviously follows that all this austerity is to blame for the lack of recovery!

See, Krugman thinks you’re stupid. He thinks just looking at actual government spending and debt can’t tell you whether there is “austerity” or not. Here’s government expenditures over the past two decades:

FRED-expenditures

Man, would you look at all that austerity! It’s just killing the economy! And here’s total public debt:

FRED-debt

My goodness, would you look at all that austerity! No wonder the economy can’t recover! Our wise government overlords know better than we do how best to spend our money, and we need the bureaucrats in Washington, who know better than the free market how best to direct scarce resources to the most productive ends, to confiscate our wealth from us and spend our money for us. If only we did this, then we would see a recovery, for sure.

Update: Krugman points out that government spending under Obama has risen “from $3.475 trillion in fourth-quarter 2008 to $3.917 trillion in fourth-quarter 2012 — a rise of 12.7 percent”. That’s what he calls “austerity”.

Did you find value in this content? If so and you have the means, please consider supporting my independent journalism.

About Jeremy R. Hammond

About Jeremy R. Hammond

I am an independent journalist, political analyst, publisher and editor of Foreign Policy Journal, book author, and writing coach.

My writings empower readers with the knowledge they need to see through state propaganda intended to manufacture their consent for criminal government policies.

By recognizing when we are being lied to and why, we can fight effectively for liberty, peace, and justice, in order to create a better world for ourselves, our children, and future generations of humanity.

Please join my growing community of readers!

 

Download my free report 5 Horrifying Facts about the FDA Vaccine Approval Process.

Download my free report 5 Horrifying Facts about the FDA Vaccine Approval Process.

My Books

Related Articles

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Pin It on Pinterest

Shares
Share This