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Wednesday, May 15, 2013

'About That Debt Crisis? Never Mind'

Paul Krugman on the recent news that the deficit is falling:

About That Debt Crisis? Never Mind, by Paul Krugman: OK, another toe dipped in reality. The new CBO numbers are out, and they scream “debt crisis? What debt crisis?” ...
Yes, debt rose substantially in the face of economic crisis — which is what is supposed to happen. But runaway deficits? Not a hint.
Yes, there are longer-term issues of health costs and demographics. As always, however, these have no relevance to what we should be doing now...
Meanwhile, our policy discourse has been dominated for years by what turns out to be a false alarm. To the millions of Americans who are out of work and may never get another job thanks to premature fiscal austerity, the VSPs would like to say, “oopsies!”
Or maybe not even that. ...

It's a good scam if your goal is to reduce the size and influence of government: implement spending cuts that slow the economy, never mind the unemployed, then call loudly for tax cuts and deregulation to spur economic growth. Repeat as needed.

    Posted by on Wednesday, May 15, 2013 at 03:41 PM in Budget Deficit, Economics, Politics, Unemployment | Permalink  Comments (31)


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