Economy Needs Another Big Stimulus Push: Krugman

Discussion in 'Politics & Religion' started by S2007S, Sep 1, 2010.

  1. S2007S

    S2007S

    Yep that's what the economy needs, more hundreds of billions of dollars to help continue the prop job. When the fuck are people going to wake up and realize that spending is NOT the answer to this crisis, why does everyone think throwing trillions of dollars at the problem is going to be the solution for this fix in this worthless economy.


    Economy Needs Another Big Stimulus Push: Krugman
    Published: Monday, 30 Aug 2010 | 5:20 PM ET
    Text Size
    By: CNBC.com


    The US economy needs another government stimulus program as big as the one President Obama pushed through Congress in February 2009, economist Paul Krugman said on CNBC Monday.

    "Everything is pointing to the need for more spending," Krugman said. "The economy remains depressed."

    Such a massive new spending program is unlikely to be proposed soon, however, especially with the mid-term elections approaching.

    Krugman said the effects of the stimulus dollars on the economy are fading out, with the maximum impact on growth in the final quarter of 2009.

    The money could immediately be spent on infrastructure needs throughout the country that are not being met.

    "Even aside from the need to stimulate the economy, when the federal government can borrow very cheaply, that’s probably a good idea to get some projects started," added Krugman, a Nobel-prize winning economist who is an op-ed columnist for The New York Times.

    According to Krugman, the bond market, which has soared to record heights, is in effect saying there's no need to worry about deficits.

    "They are happy to lend the federal government money at very low rates," he said. "The bond market is telling us it’s terrified of deflation, of a weak economy for a very long time. So, no, all of the economic data make the case for a stimulus."

    Additional stimulus could come from tax cuts, but not tax cuts for the wealthy or for corporations. Neither are likely to spend much of it to make a difference, Krugman said.

    "If you give a temporary tax cut to wealthy people who are likely to be highly liquid, they are not going to spend very much of it at all," Krugam said. "Give a temporary tax cut to corporations, who are sitting on piles of cash, they are not going to spend any of it."

    A payroll tax cut would be better, since it would put money in the hands of people "who might very well spend it," he added. "But basically, I would take whatever we can, except that those high end tax cuts, corporate tax cuts, are going where the problem isn’t; it's just a waste of money," Krugman said.
     
  2. Krugman... a Big Government, Socialist Dickhead.

    The ONLY thing which could save America economically and create the necessary jobs for our unemployed... is a return to capitalist principles. Almost nobody seems to get it.
     
  3. pspr

    pspr

    Krugman is an idiot. The rest of the world is growing but the Socialist tax and spend anti-business policies of the Democrats are keeping the U.S. from growth. They're damn idiots! :mad:
     
  4. J-Law

    J-Law

    We need spending.......Just corporate & not Federal spending.

    The only thing this government has to do is step up and instill confidence and they can do that without reaching for their wallet

    :)
     
  5. jem

    jem

    we need a systematic change - to change expectation and unleash investment.


    Flat tax of 10 or 11% is the best answer.

    If only Obama would break out of his socialist mode.
    He would become a great man truly serving the people.

    Just think flat tax and closed boarders... everyone would eventually have a job.
     
  6. pspr

    pspr

  7. LEAPup

    LEAPup

    Agreed!

    A cut in government spending of 50% and dropping the top tax bracket to 20% would be a major start. Painful to stop spending? Yep! Painful to stop skoking crack too! That's what the government does though...
     

  8. A better analogy is that that happening is about as likely as an opium addict with a 1000 acre opium poppy farm to stop smoking. If pain starts setting in, just grow more poppies and smoke more opium. As long as the rest of the world keeps working the fields for us, no need to quit the habit, right? Why feel bad if we dont have to?
     
  9. xburbx

    xburbx

    +1
     
  10. I disagree with the timing...I think the Dems know it would get their asses kicked even harder in November, if they pushed through another "stimulus" package...No, no, you underestimate how evil these a$$holes are...they will wait until the lame duck session and then, when it (surprise, surprise) doesn't "stimulate" the economy...they will blame the newly elected Republicans.

    -gastropod
     
    #10     Sep 2, 2010