Streams

Paul Krugman on the Economy

Tuesday, January 29, 2013

Nobel Prize–winning economist Paul Krugman looks at the state of the economy and whether or not we’re on the road to a lasting recovery. In his latest book End This Depression Now! he argues that a quick, strong recovery is within reach, if our leaders can find the "intellectual clarity and political will" to end this depression now. He’ll discuss the budget, the president’s economic plans, and whether income inequality is hurting our recovery and economy.

Guests:

Paul Krugman

Comments [63]

3ddiEB from Queens

@Peter Talbot from Harrison, NJ
Your comments on the ARC Tunnel are totally wrong, first it wasn't just a tunnel to be built, it was all the tracks and bridges leading up to it, it was a massive investment to speed up the NEC that wouldve benefited the whole region by relieving NJ Transit tunnels.
If you think that that investment would only drain jobs from NJ, you are out of your mind, NYC jobs are the most profitable in the region and the highest earning taxpayers work here, people's commuting time would have been decreased and it was a ridiculous excuse for Christie to stop the project only to divert it for roads.

Feb. 01 2013 09:32 AM
Peter Talbot from Harrison, NJ

@thatgirl from Manahatta:

It was Corzine (not Christie) that accepted the initial 63rd Arc tunnel fed money, Corzine and his Goldman Sachsian owned predecessor that were willing to go along with Frank Porkenburg to fleece the taxpayers in favor of the "big spend" benefitting only Manhattan and midtown workers that lived in the wealthier suburbs of NJ (that don't mingle with po folks on the PATH and such) from a completed 63rd Arc Tunnel project, all the while NJ's own disastrously ignored infrastructure continues to rot away (Pulaski Skyway, Newark subways, Northeast corridor rail trackage, bus route closures, etc., etc.). The Arc tunnel was to be yet another flag planted by NYC in the guts of New Jersey with little reciprocal benefit and a totally open funding structure that would have crushed NJ taxpayers disproportionately without doubt. Thatgirl is rather too parochially from Manhattan.

As for my kids, they are infinitely qualified to deconstruct Prof. Krugman's lauded faux economics for themselves. In fact, the Professor produced nothing but platitudes in aiming for the low-hanging fruit of the tea party to promote a new New Deal. He mistakes his own shibboleth. Most of Morganthau/Braintrust projects ended up in the scrapheap despite providing food for work. It was war mobilization more than any spending policies that changed the economic prospects for the relatively self sufficient America of the 20th Century, and I very much fear that this same bloody red herring of conflict is the "plan B" of too many politicos that do not remember or could care less about history. That's the scary part of the tea party agenda and the supporters of the Patriot Act (including the POTUS). Balancing the budget now is certainly a canard: so what? So is attention to big project infrastructure unless the US restores at least a modicum of relative manufacturing and high volume transportation capacity. Expanded service to and from NYC with passenger trains to justify Lautenberg's eponymous NJ Transit Mausoleum far from current population centers in Secaucus should be near the bottom of the to-do list. Sorry to exercise poster patience, but I'm incensed by heavily partisan cant touted now in improved paperback form as "intellectual clarity." Again: a disgrace to Princeton and an insult to New Jersey.

Jan. 30 2013 02:21 PM
Noach from Brooklyn

jgarbuz from Queens wrote,

"The best "infrastructure spending" our society can make is to get rid of our oil burners and get into electric cars."

Where does the electricity that powers such cars come from?

Jan. 30 2013 01:48 AM
Joeyb from NNJ

Aristotle said something along these lines: "“It is also in the interests of a tyrant to keep his people poor, so that they may not be able to afford the cost of protecting themselves by arms and be so occupied with their daily tasks that they have no time for rebellion.”

Jan. 29 2013 11:01 PM
David

Henry from Manhattan: The best introductory guide to economics:

Economics in One Lesson

PDF version
http://www.fee.org/files/doclib/20121116_EconomicsInOneLesson.pdf

Online version
http://steshaw.org/economics-in-one-lesson/

Jan. 29 2013 05:48 PM
Noach (Independent Pro-99% Traditionalist) from Brooklyn

@thatgirl from manhattan

Your second paragraph was completely gratuitous and a particularly ugly personal attack on another poster. Going after someone's children is about as low as you can go.

Jan. 29 2013 03:06 PM
thatgirl from manhattan

Peter Talbot from Harrison, NJ - Yes, yes--Christie liked the Arc Tunnel up to the point of taking the Fed dollars provided to start the project, and not returning them when he decided they weren't enough to cover it. Winning!

Your children "refused" to apply to Princeton? Perhaps they, wisely, figured out they wouldn't be accepted.

Jan. 29 2013 02:36 PM
Noach (Independent, Traditionalist) from Brooklyn

Reminder: While Krugman was enthusiastically supporting Obama for President in '08, people like Noam Chomsky, Jeremy Scahill, Chris Hedges, and many others saw Obama's rhetoric for what it was and never had any illusions that he was anything other than another representative of the 1% ruling sector.

Jan. 29 2013 01:48 PM
Noach (Pro-99% Traditionalist) from Brooklyn

"BigGuy from Forest Hills, NY" lamented the highly biased, propagandistic way that the Wall Street Journal, CNBC and Bloomberg News cover the economy.

My response: Would you expect any different from such organs of the 1% predator-class?

jgarbuz from Queens wrote,

"The reality is that ultimately electric cars, not high speed rail, will be the answer to US energy and transportation problems."

My response:

1.) Are you actually suggesting that electric cars can be anywhere near as energy efficient as mass transit?

2.) What about traffic congestion and scarcity of parking spaces?

3.) What about the many people who cannot afford a car?

Jan. 29 2013 01:34 PM
Peter Talbot from Harrison, NJ

Everything Mr. Krugman said is either a half-truth or an error. I am a progressive but ashamed of the title if it is going to be applied to this ignoramus.

Walmart earnings don't stay in the US except to be spent to kill Mom and Pop stores and all other competitors, making us more dependent on foreign manufacture.

Hiring more teachers with wages paid for by inflated property taxes will do nothing to improve money velocity or unemployment, but it will certainly further impoverish fixed income householders, the aged preponderating.

Inflation is not under control: it is actually at about 50% annualized but the Dept of Commerce changes the yardstick and the survey methodology to prevent any real data comparisons under orders from the bozos at the top. In fact, Mr. Krugman supports inflating our way out of the crisis and should simply admit this (it's going to happen anyway).

The banks have done nothing to improve liquidity, and the major beneficiaries of Krugman's big gubmint microeconomic recommendations will be the banks and insurance companies.

Infrastructure (trains, fiber optics, electric propulsion, renewable energy) improvements are all good places to spend tax cash, but for American produced product without exception. The 63rd street train tunnel was a boondoggle for Jerseyites except for Senator Pork Lautenberg and the Hudson Dem machine and Christie was perfectly right to say no way to this underfunded fiasco: we don't need to p+s away tax dollars when municipalities are dying due to tax revenue drift.

Hope Mr. Krugman can still eat well from his Nobel Prize money. He is an almost grotesque agent provocateur for the banksters he lamely pretends to excoriate. I am so happy my kids refused to apply to Princeton.

Jan. 29 2013 01:33 PM
Shawn from Old Tappan

Vlad:

I just think that this type of thinking is going to lead us to problems You said "We need to grow from our wages and productivity and not from borrowing.. The more we "grow", the more we "spend" and the more jobs we have."

But my point is, to what end? Do you honestly believe that we can continue to grow forever? At some point we need to stop growing. The inevitable downfall of our country lies in the simple fact that some people feel that we NEED to constantly grow. We don't. We can find a nice balance and nice size, and just maintain. For some reason there is this persistent idea that constant growth is life, and lack of growth is death. And that's just not true. If you grew in size continuously through life you would collapse under your huge weight, or die from lack of sustenance. And that is where this economy is headed, unless we stop trying to do the impossible.

I run a small business. I have done very well in my eyes. But I have no illusion that I will grow my business infinitely. In the beginning we had huge net profit increases each year, and eventually that stabilized, and now we maintain a nice profit. I'm not interested in opening multiple places, or being twice as busy, or hiring a thousand new people. I refuse to buy into this fallacy that I HAVE to grow my business forever. I don't. And in fact, I can't.

Like everything else in existence, we can not grow infinitely.

Jan. 29 2013 01:27 PM

Can ANYONE point to one...ONE example of the antithesis Krugman policy of the Bush administration that worked???

From SURPLUS to deficit in the FIRST FOUR YEARS!! And then...MASSIVE financial collapse as icing on the proverbial cake.

Ridiculous.

Jan. 29 2013 01:20 PM
MG from Manhattan

TO Dboy:
on introspection....
Or any other "conservative" but it 's just that many times folks (meaning everybody) do not think deeply ... often from watching too much FOX noise. You can always deconstruct their logic and reveal the shaky underpinnings... even a comedy show like the Daily Show is able to do that .. BUT I do respect Ya (J from queens.. cause I LOVE queens, and we are all Nykrs after all) ... Also he is all for electric cars and that ain't bad! It's that usually conservatives come up with things that are so ridiculous that often progressives go into a brain freeze because they do not know where to start to address all the convoluted logic, outrageous code words, general misinformation etc etc .....

Jan. 29 2013 01:19 PM
Noach (Anti-Predation Traditionalist) from Brooklyn

Christine from Westchester wrote that she lost faith in the Nobel Peace Prize when it was awarded to President Obama, "who had done nothing but step into the office".

If only that were true! If President Obama had merely "done nothing but step into the office", his being awarded the Nobel Peace Prize would not have been nearly as perverse. Unfortunately, the reality is that when he received that honor, President Obama already had a sufficently disturbing record on matters related to peace and justice.

Jan. 29 2013 01:16 PM

MG from Manhattan~

Don't try to make sense of this idiocy. Logic has never been a burden for Mr."jgarbuz".

Jan. 29 2013 01:11 PM

Shawn..

We need to grow from our wages and productivity and not from borrowing.. The more we "grow", the more we "spend" and the more jobs we have. Consumers are the "job creators".. they create 70% of job growth and not the "investors" who only create 30%.

He was right if just look at the 3 countries that started out at the same point we did back in 2008 and look where they are today compared to us.. England, Greece and Ireland...

Jan. 29 2013 01:08 PM
MG from Manhattan

BAD MATH Introspection

1913
OK 5000 FOR A HOUSE but Im making 2 a 12 hour day (no vacation , dont work sunday dont come in monday) no health benefits etc etc

ummmmm that wil take me 7 years (assuming I dont eat and am naked and sleep in the street .. to save the 5k)

2013

I make $520 a day under OBAMA (lost my job under Bush)

how long to buy a 80k house in the south hmmm even living large compared to my naked starving and sick 1913 brother .. about 2 years ... go figure!

Jan. 29 2013 01:04 PM
MG from Manhattan

jgarbuz from Queens

BAD LOGIC example:

"$10,000 could buy you two whole houses in 1913, when most people were making $2 a day. You could still buy a good house for $10,000 in 1940. How many houses can you buy with $10,000 today?"

YO ...Jgarbuz dude... since Obama got in office I went from outright poverty ( scraping by on $20 a week and 6 months behind in public housing ) to making $520 a day ... as a technology consultant with a company that is 4X the size it was in 2010
$2 a day....WTF!
Are you on the same planet as me? I wil take 2013 over 1913 ANY day decade or century .. if you want to go live in the past you are welcome to it if you can find a way.. I will take today ....and my $520......

Jan. 29 2013 12:53 PM
MG from Manhattan

The banks are already "printing money:" every time you catch HSBC with their "shoppers plus" plans and other scams and find out that they were billing you for months or a year for a silly "service " that you did not even order at the clip of 12 $ a month they are printing money.. Take that incident X a couple million people over a 6 to 12 month period and they are showing a balance sheet ,millions of dollars in the black. Sure they wil "reimburse you "
but the daily and monthly money markets got that cash and it was expanded in the intrim out of THIN AIR.......
think about it and look for examples of the private sectors ability to "print money " ... they are everywhere. ITs how we live .. this is not Weinmar Germany , we are not nor wil we ever in the next 60 years be in a position to be forced by gunpoint to pay gold to other nations ( ever wonder why our military is so HUGE? ) As long as there is a pile of potato chips and sugar sodas and al the junk food and entertainment we want there is no chance of a wheel barrow sized wallets.

Jan. 29 2013 12:49 PM
Lance Rutledge from Brooklyn

Rather than introducing someone like Paul Krugman with all of those lengthy, formal titles, wouldn't it be a lot easier and descriptive to just give his height,
weight, and shoe size?

Jan. 29 2013 12:43 PM
Edward from Washington Heights AKA pretentious Hudson Heights

MG, a little introspection would do you good.

Jan. 29 2013 12:42 PM
Nancy from Manhattan

whoa! that was a softball interview.

Jan. 29 2013 12:40 PM
Donna from NYC

It's a common misconception, but Timothy Geitner never worked for a Wall Street bank.

Jan. 29 2013 12:40 PM
jgarbuz from Queens

to MG

$10,000 could buy you two whole houses in 1913, when most people were making $2 a day. You could still buy a good house for $10,000 in 1940. How many houses can you buy with $10,000 today?

Jan. 29 2013 12:40 PM
Shawn from Old Tappan

Again, he keeps on spouting this idea that a smaller economy is a bad thing. In times of plenty, he wants to expand. In times of drought, he wants to expand. Does that make sense to anyone? Where else in the Universe do these rules apply?

He wants to spend more, increase the economy, and only because that's popular. Because more people, who live way beyond their means anyway, can continue this fallacy. He is building a house of cards. He is literally building a Ponzi scheme, where the newer people pay more money so that other people can get out of the game ahead. And like all those things, they will fail.

We need to shrink. We can not support this size economy. We can't grow forever.

Jan. 29 2013 12:39 PM
Dan from Queens

Krugmanese - monetary expansion = printing money. Markets love money expansion because hot money flows into wall street or its equivalent. It does not mean the underlying economy us healthy. Listening to this is painful.

Jan. 29 2013 12:38 PM
GW from Manhatan

if you run a #1 world class economy like you run a family budget you are just plain out of touch with reality ....

Jan. 29 2013 12:38 PM
MG from Manhattan

to: jgarbuz from Queens

YOu make absolutely no sense at all. NONe .... so you mean to tell me that if I buried 10,000 US dollars in 1913 that they are worthless today? Gold prices rise and fall. I wil take that 10k buried in 1913 any day ( they were probably gold certificates and if tehy survived in great shape are probably worth at least 5X face value.

Apparently most of the agrees with me as the US dollar is THE RESERVE currency . And 80 % of the Gold stored at the federal reserve bank in Wall street is owned to foreign nations... The US is the safest place to store your gold in the past 200 years... and possession is 9/10 of the law ;)

Dont give me the inflation blah blah blah...I am not an idiot.... I could not buy an Ipad in 1913 and if I could it would have been worth several million dollars in 1913 dollars... I can now and it's 340 bucks..

Jan. 29 2013 12:37 PM
Edward from Washington Heights AKA pretentious Hudson Heights

How about getting the US independent of Middle East oil?

Develop domestic oil and build and open the Keystone pipeline from Canada.

Stop the transfer of hundreds of billions of dollars each year to OPEC.

Jan. 29 2013 12:37 PM
Amy from Manhattan

It's interesting how the same people who keep saying gov't. should be run like a business keep comparing the federal budget to a family budget. Business try to increase their revenue. The "Tea Party" congressmembers refuse to raise government revenue.

Jan. 29 2013 12:35 PM
Kathy LPV

I'm glad you call this a Depression, not a Recession. So many unemployed, underemployed, and in a way, homeless. Don't people know history, austerity kills the economy, where "spending" on infrastructure adds to the economy? People who don't have income can't spend, causing businesses to go bankrupt. Where as Greece and other European countries under austerity are failing!

FDR's WPA added jobs, CDC gave people working & able to buy goods, keeping businesses in the black. Clinton's spending policies brought us out of the HUGE deficit caused by Reagan & Bush. We can get out of this "Depression" - only by helping people get back to work, with public-private projects, as FDR did.

Jan. 29 2013 12:33 PM
fuva from harlemworld

But, Paul, you say (and I agree) that Inequality bestows increased disproportionate political power on the rich. And you say that the failure to invest in economic growth (infrastructure spending, etc.) is a function of political will. And yet you say that Inequality is NOT a major driver of current economic stagnancy?

Jan. 29 2013 12:32 PM
Lucien from Manhattan

Please talk about Fed intervention and economic repression. Thank you. It's seems to have been asked a few times here.

Jan. 29 2013 12:31 PM
Henry from Manhattan

A specific technical question for Krugman:

Is there a singular book on economics for the layman that he could recommend?

(And it’s fine to name one of his own books.)

Jan. 29 2013 12:31 PM
Henry from Manhattan

Would Krugman include the GOP acceptance of wrong economic models as a part of what Republican Bobbie Jindal refers to as being “the stupid party?”

It’s a rhetorical question, no need to actually ask it.

Jan. 29 2013 12:30 PM
Christine from Westchester

to Vlad: but what are the other results of the increase in minimum wage: employers can't afford to keep them all (same revenues coming in) so they decrease the jobs, costs of things go up (from fast food to Walmart). Now, that may not be all bad (fast food would be less accessible if it cost more) but wouldn't that also hurt those you would propose to help? Cause/ effect.

Jan. 29 2013 12:29 PM
mz from plano, tx

I'm from the south, and so much of popular conservatism here grows from a belief that taxes primarily go to supporting those on welfare. What would you say to someone who feels this way if you were trying to reason with them? On the ground, this issue IS why the south votes republican.

Jan. 29 2013 12:29 PM
jgarbuz from Queens

The best "infrastructure spending" our society can make is to get rid of our oil burners and get into electric cars. But the gas burning industries are still strongly working to keep them down. They are too threatening to too many embedded interests.

Jan. 29 2013 12:29 PM
GW from Manhattan

The interesting thing is as valuations ebb and flow and appear and disappear like so many quantum events ... the Fed and world monetary authorities are basically playing catch up to the "markets" How can you really control a web site being valued at 70 billion all of a sudden for a decade and later worth perhaps nothing. Banks thru their manipulation of credit cards and fees and such have the ability to "print" money by adding fees and service charges and creating accounts receivables at will.

Economics at the micro level is not unlike quantum physics

based of faith and perception alone a trillion is just a prime number followed by a series of "0's" or nothing. It's overwhelming impact is just perception.

As long as there is enough basic goods and services to feed, house, clothe and entertain ( and there is ) .... everything else is just manipulated fluff .

In an automated world (look at how it's made on the science channel) we are going to have to come to grips with the fact that not everyone will be able to find work that is "economically" justifiable. Non the less they wil still have to have something to do, as well as all the demands and needs that will keep the rest of us employed.

Jan. 29 2013 12:29 PM
Amy from Manhattan

"Proximate cause" means the most immediate cause. Deregulation was a (not necessarily *the*) root cause of the economic collapse.

Jan. 29 2013 12:29 PM
Shawn from Old Tappan

Krugman makes a fatal mistake; that the US economy will go infinitely. There is not an organism on Earth that will grow infinitely. And despite Americans attempts, we can't physically grow infinitely. So a depression is not a bad thing, but rather a correction to an obese economic plan that can not be supported.

The only reason Krugman is popular is because he is telling fat economists what they want to hear. Eat your way out of the problem. Spend more more more. And grow grow grow, worrying about losing weight later. Guess what? That's a prescription for instant death.

We need to slow down. We need to make the economy smaller. Yes, it will hurt. A lot. But it is necessary to continue to live. Krugman will be exposed for his fallacy that SOMEHOW the US economy is immune to the fact that nothing can grow forever.

Jan. 29 2013 12:27 PM

Paul, thank you for your constantly astute observations!!

Jan. 29 2013 12:27 PM
Brian from Brooklyn

I agree with you, Mr. Krugman, Obama should have prosecuted fraud on Wall Street. There is nothing that produces greater confidence in the markets, in the public, and in the government than the sensible and consistent application of Justice.

Jan. 29 2013 12:26 PM
sanych

Mr. Krugman,

Construction workers come Mexico, teachers are now imported from India, everybody buying goods made in China means that we increase trade deficite and sooner or later we will need to pay the bill or declare bankrupcy.

You are a charlatan...

Jan. 29 2013 12:25 PM
thatgirl from manhattan

jgarbuz - Then our highways will be gridlocked with electric cars!

Jan. 29 2013 12:25 PM

Minimum Wage...

Wouldn't raising the "minimum wage" to a "livable wage" solve many problems?

1) Lower Entitlement Spending... Food Stamps... Housing... etc.

2) Would act like a Stimulus by putting more money to work for the Economy.

Jan. 29 2013 12:25 PM
BigGuy from Forest Hills, NY

Is there any way for the general public to kill Zombie Economics?

Most of all, I hate reading on the WSJ editorial page how the economy will improve if we ELIMINATE the minimum wage. Allow people to compete for less money and we'll all benefit.

CBNC and Bloomberg and the WSJ report how the financial markets are doing and NEVER, EVER say the economy needs fiscal stimulus -- except when you or Joseph Stiglitz is a guest.

Jan. 29 2013 12:23 PM
jgarbuz from Queens

To MG

The US dollars were ONCE UPON A TIME, very long ago, a currency you could bury for a 100 years and still be worth something after being unearthed. But the one "currency" that you can almost certainly bury and still retain its value in 100 years are solid gold coins.

Jan. 29 2013 12:23 PM

To thatgirl. A more logical revision to FICA taxes is simply to lift the wage price ceiling & collect at the normal rate. Making "carried interest" and other income would simply increase the types of income covered.

Also, capital gains shouldn't be operative for assets held under at least 10 years. Held that long they are investments & not short-term bets.

Jan. 29 2013 12:23 PM
Chris from Washington DC


Question for Dr. Krugman:
Could one argue that government spending is more stimulative than private spending (because government spends more domestically, whereas private spending tends more to stimulate foreign economies)?

Jan. 29 2013 12:23 PM
Li from Manhattan

What happens when rates do rise to the holdings of the Federal Reserve? They are by far the prime buyer of our debt now which is why rates are so low. It is completely artificial. What are the implications for the country.

Jan. 29 2013 12:21 PM
Christine from Westchester

to Tien: it took this interview to make you question the value of a Nobel prize? About the time the handed one to Obama who had done nothing but step into the office, I threw up my hands.

Jan. 29 2013 12:20 PM
MG from Manhattan

If you are a country of 11 million people with limited natural resources and misallocated and managed human capital (Greece) you have to worry about deficits and such. When you are a reserve currency, the No 1 world technological, economic and military power, with a 325 million person market for good and services where even entitlement costs turn into M1 you have a LOT of play in the short to medium term to do what ever you want responsibly, because when it is all the economic and political matters are settled the US wil remain the most consistant ( a world standard currency that is still the world standard after 200 years ) and powerful nation. CHina?
60 years old with 20 years at entering the world economic game. This is not enough time to prove economic and political stability. And after all why is China rich ? Because they have $$$ that we DECIDED to give them acces to after we brought China to the capitalist table. Japan? A shrinking population means that it's economy will contract simply because of the numbers and Japan's cultural inability to grow thru immigration. The Euro? not more than 20 years old and on the verge of collapse! The US Dollar is the one currency that you can bury for 100 years, maintain and even increase numismatic value and still be spendable. We need to take advantage of our position and in fact we will.

Jan. 29 2013 12:20 PM
Charles from Brooklyn

We have a budget a trillion a year over the worst of the Bush years *which were terrible) and monetary policy as loose as ever in history with almost zero rates and yet we have growth of less than the inflation rate - this is not working Mr. Krugman. Doing more of it will not help. If you could deficit spend your way to wealth, every country would be paved in gold.

Jan. 29 2013 12:19 PM

eisenhower, a republican president, presided over the US with tax rates maxed at 91%. america was strong then

Jan. 29 2013 12:19 PM

The Chained CPI is a people killer. As it is, the current CPI U/W measure is so poor that it doesn't even add actual spendable $ for retirees.

This year's SocSec COLA is 1.7% but Part B premiums go up 5% and Part D premiums are up 14.53% thus wiping out any real benefit increase.

Jan. 29 2013 12:18 PM
jgarbuz from Queens

The reality is that ultimately electric cars, not high speed rail, will be the answer to US energy and transportation problems.

Jan. 29 2013 12:18 PM
thatgirl from manhattan

What does Mr. Krugman think of the idea to raise the FICA contribution ceiling from a measly percentage of the first $113K of annual salary to a percentage of 50 or 100% of salary to ensure Social Security doesn't fail in future? Hasn't it been proven that most people get more benefit than they put in, what with longer lives and the unfair proportion of the more wealthy's income being taxed?

Jan. 29 2013 12:18 PM
Vinny from Manalapan

We must cut future benefits to avoid cuts in future benefits??

I love you Paul. You are awesome.

Jan. 29 2013 12:16 PM
Tien from Brooklyn

This interview - specifically the answers being spouted, make me question the value of the Nobel prize...

Jan. 29 2013 12:16 PM
fuva from harlemworld

Clarification: Deficits matter LESS in a recession than economic growth. (The only ones who ever said "deficits don't matter" are Republicans.)

Jan. 29 2013 12:13 PM
Jen from Manhattan

huh?! The government can borrow at such low rates solely because of the Federal reserve printing and buying our own treasuries! We've been hearing not now, for years, when is the time to take action before it's too late?

Jan. 29 2013 12:12 PM
jgarbuz


Krugman is fanatically committed the old "New Deal" ideals of larger government and government spending, and heavily taxing the wealthy to pay for it all. Not going to happen.

Jan. 29 2013 12:09 PM

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