Krugman Blames Obama For Collapse of US Democracy
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  • Jason Bontrager

    Are Banana Republics renowned for keeping their governments from spending more than they take in from taxes?

  • mezzrow

    Interesting that the highest rated comments to this morning’s Krugman screed (to this datestamp, anyway) are from California, Washington (the state of), and… Delhi, Geelong, and Oberpframmern, Germany.

    The restive nature of the flyover proletariat is disturbing our betters worldwide. I wonder if Krugman was on his little getaway in St. Thomas or St. Croix, or wherever it is he finds his muse, when he penned this screed? After all, we just have to make more money when we need it, right?

  • WigWag

    As usual, Krugman is absolutely right. He told us way back during the primary fight between Hillary Clinton and Barack Obama that the then Senator from Illinois was a feckless moron; he was right.

    Cutting government spending in the face of extraordinarily low interest rates, which makes monetary policy ineffective, is a sure recipe to accelerate economic stagnation.

    And Krugman is right about something else; the deal the President agreed to, makes cutting the deficit harder not easier. As government spending plummets and as a result the economy gets worse, government revenue will shrink still further and the deficit problem is likely to deteriorate.

    We’ve been through this before; during the Great Depression, Roosevelt’s measures were too timid until the massive government spending program called World War II saved the economy. It will take government spending at that level again (as a percentage of GDP) to reverse the current economic collapse.

    We’ve also had the opportunity to watch Japan for the last 15 years; while government spending in Japan has exploded, it hasn’t exploded enough to counteract the preternatural frugality of the Japanese people; the result has been a long and seemingly endless economic decline.

    Republican economic policy is stupid; Obama just proved what Krugman always knew and anyone else with a brain should have already known. Obama is also stupid.

    As a result of this deal the economy will almost surely fall back into a deep recession; inevitably this means that the next President will be a Republican. Once in office, whomever the next Republican President is, will undoubtedly follow the Republican playbook of cutting spending still further which will cause even greater economic stagnation.

    And there it goes; America’s leadership of the world down the toilet. The Republicans, who are supposed to be the Party that believes in American exceptionalism, just proved that they couldn’t care less about American greatness. They agreed to a trigger mechanism that will result in massive cuts to defense unless a deficit deal with the Democrats is arrived at. But there will be no deal because the Democrats will continue to insist that unless taxes are raised on the rich, they won’t agree to further cuts in discretionary or entitlement spending. Without a deal the triggers in the current compromise kick-in and defense appropriations will plummet.

    There was a time that Republicans were just dumb; they thought that the United States could possess the largest military in the history of the world and at the same time have the lowest tax rates in the developed world. Now, they’re worse, they no longer seem to care about America’s military capabilities.

    The American economy is about to enter a long period of stagnation and the world is about to become a much more dangerous place. As the triggers in this bill kick-in and as the United States experiences truly massive reductions in defense spending, what do you think the Chinese are going to be doing? What about Islamic extremists; are they likely to take a holiday?

    Thank you President Obama. Thank you John Boehner and Mitch McConnell; you guys are doing a helluva a job.

  • Adam

    I also thought the ‘Banana Republic’ line was a bit of a throwaway, maybe a deadline was looming…

    I enjoy Krugman, but lately he’s been sounding less analytic and more… diatribolic. Hmm. I hope he tacks back towards the center soon.

  • Luke Lea

    Lest we forget:

    “Eventually we came to the Reagan era, when it became de rigueur not to tax but to borrow; to spend money not on social services but on armaments. The national debt more than doubled in eight years and interest payments on the loans soared to over $150 billion in a year. This did not immediately affect people. Rich Americans grew rich in an atmosphere of deregulation and gree, and poor Americans — But who worries about poor American except people branded with the L-word that no one dared mention anymore?

    It makes me think of Oliver Goldsmith’s lines:

    Ill fares the land, to hastening ills a prey,
    Where wealth accumultes, and men decay.

    Issac Asimov, A Memoir 1994

  • vanderleun

    ” I wonder if Krugman was on his little getaway in St. Thomas or St. Croix, or wherever it is he finds his muse, when he penned this screed? ”

    It really doesn’t matter since, to paraphrase “No matter where he goes, there she is.”

    I’m looking forward to the reality show featuring the Krugmans at home entitled “I Married a Moonbat.”

  • Jack

    James Buchanan? Um, don’t forget that the principal issue over which President Buchanan was feckless was slavery. And the consequence of that fecklessness was a civil war that killed 600,000 (or what is euphemistically referred to here as “breakup of the union.)” I’m surprised that any serious observer would make the comparison to Obama. I need to read Krugman’s column again, that is some hyperbole. Mezzrow, the little getaway is Frederiksted, St. Croix.

  • Marty

    Well, I guess we have to have the [people with whose arguments I do not agree] like Krugman and Sullivan (not to mention Mr. [Ms.?] Wag) to aid in making cogent and instructive observations.

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