Paul Krugman on the "Fiscal Cliff"

Wednesday, November 28, 2012

Paul Krugman, New York Times columnist, Nobel Prize-winning economist, and author most recently of End This Depression Now!, discusses the "fiscal cliff" negotiations in Washington and how he thinks it should be resolved.


Guest host Heidi Moore and The Guardian want your thoughts on how the fiscal cliff would affect your finances. Go here for more info.




Paul Krugman

Comments [20]

Robert from Queens

Krugman is a wolf in sheep's clothing.

Dec. 05 2012 01:38 AM
Jack Cornell from 40207

SSI/Medicare are stigmatized as the as bastard children in the tale of the "Fiscal Cliff". Congress has had its pleasure by useing SSI as a welfare program. Medicare has become a plaything for hospital/insurance moguls.

SSI now functions as a flat tax on the American WORKER. Medicare was supposed to be financed by 10% reduction in SSI benefits (Reagan, 1984).

SSI/Medicare are not the burden, rather they support what is designated by what our solipsistic congress calls "the burden".

SSI is not welfare. It is a contract with the Amercan worker for retirement protection (FDR). Diogenes still roams the hall of congress.

Dec. 04 2012 11:23 AM
Larry Young from Cortlandt Manor, NY

I don't see why so many are in favor raising revenue by clawing back the deductions and lower rates on the first $250,000 in income for folks that exceed that. This is a regressive policy that jacks up the effective marginal rates on those earning just above that threshold to higher than the marginal rates on the truly wealthy. This is just poor policy for the sake of being able to say that the headline top rate didnt increase. What a terrible trade-off.

Nov. 30 2012 06:31 PM

Nov. 30 2012 04:24 PM
scott from soho

Obama wins a Nobel Prize.
Krugman wins a Nobel Prize.

So much for the Nobel Prize.

Shouldn't we be asking where the government spent the $3,600,000,000,000.00?

Nov. 28 2012 09:27 PM
art525 from Park Slope

@Martin Chuzzlewit- What he and all voices of reason are asking for is not to raise taxes on the rich but to let a supposedly one time tax cut for the rich expire. Then they would actually pay their fair share for the first time in decades. The taxes on the rich were higher during the Clinton administration and the economy was strong. I have the feeling you didn't grouse about the money burned through by the Bush administration that brought us this economic collapse which this president inherited. As we all know Clinton left Bush a surplus and Bush gave us a huge deficit. And as far as your demeaning comment about the president- it was Teddy Roosevelt who coined the phrase "bully pulpit" for the role of the president. He should be out promoting his policies so that the public actually hears what it is uncolored by the lies and distortions spouted by the right.

Nov. 28 2012 10:44 AM

Can someone explain why Republicans are willing to pay more through closing loopholes/ capping deductions but not through tax rates? If they end up paying the same amount more in taxes through either method, why are they championing one method more than the other?

Nov. 28 2012 10:44 AM
art525 from Park Slope

Paul Krugman is brilliant, a rarte vocie of reason.

Nov. 28 2012 10:37 AM
fuva from harlemworld

Chuzzlewit doesn't understand that
-- the problem is not the deficit, but the economy that produces such deficits.
-- the deficit ballooned under a credit economy that developed in response to the income divide that has ballooned over these past thirty years of Republican (lawmakers AND ideology) domination....

Nov. 28 2012 10:35 AM

Wall St gave money equally to Romney and Obama...all bought and paid for.

Nov. 28 2012 10:29 AM
RJ from prospect hts

In October 1990, the seasonally adjusted number of discouraged workers who are looking for work was 118,536,000;.iIn October 2012, the same statistic is 143,384,000. This does not seem a significant distinction in the number of unemployed over time. Prof. Krugman said earlier that this number is low in a nondepressed economy. Please explain.

Nov. 28 2012 10:29 AM
John A

Gotta admit, the progress of the Republicans against Norquist is good news.

Nov. 28 2012 10:25 AM
Seth Pickenstiff

The Bush tax cuts were always meant to be temporary. It is time to have them expire for Everyone!

Nov. 28 2012 10:23 AM
BK from Hoboken

Martin- he is building public consensus around his position for stronger negotiating. What do politicians care about more than anything else? Getting re-elected. So Obama is trying to get the general public am middle class on his side, to put pressure on the House Republicans. Thanks for your disdain anyway.
I differ with Krugman as a younger voter- I don't want to be responsible for trying to cut the deficit when interest rates invariably will rise. We don't need to cut a lot immediately, but we need a long term plan for Medicare as SS reform, as well as tax reform so that the code doesn't become regressive at incomes over a couple million dollars, as it is now.

Nov. 28 2012 10:20 AM should get Krugman on and debate Tom Woods or Peter Schiff.

Nov. 28 2012 10:20 AM
Maria G. from Astoria

Why are we still talking about the stock market? The stock market is totally divorced from the economy right now. The stock market was totally bullish during the bottom of the recession, and I-bankers were getting rich again right after they tanked our economy.

Nov. 28 2012 10:12 AM

Paul Krugman...

Nov. 28 2012 10:10 AM
Shawn Akin from Park Slope

I say let's go off the cliff! Taxes go up on the richest, spending goes down, Republicans save face-- what's not to like? Sure, the tax cutting will be blunt-force trauma, but there's so much waste and incompetence in government anyway, I sincerely doubt any of us will notice the difference January 2nd.

Nov. 28 2012 10:10 AM
Amneris from Somerset, NJ

It's time for news people to give up the overused and irritating "fiscal cliff" term. Reminds me of the time when the incorrectly used "It begs the question" spread through the news population like a virus and took too long to die off!!!

Nov. 28 2012 10:08 AM
Martin Chuzzlewit from Manhattan

Ask Krugman how "tax the rich" is a responsible long term economic plan and growth strategy?
And what happens when the "Boy Wonder" in the White House burns through the paltry 87 billion from these taxes within , oh, say, a few days??

And why isn't the Boy Wonder meeting with lawmakers to constuctively negotiate instead of going out in front of the media and doing the only thing he knows how to do...campaigning?
It's because he doesn't really like the nitty gritty work involved in being President.

Nov. 28 2012 09:50 AM

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