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Saturday, May 07, 2016

Where Do Trump’s Bad Ideas Come From?

Paul Krugman:

Where Do Trump’s Bad Ideas Come From?: So everyone is having fun with Donald Trump’s suggestion that he’ll negotiate forgiveness on U.S. debt — making America great by running it like a failing Atlantic City casino. ... A number of people have also pointed out that willingness to trifle with the full faith and credit of the U.S. government didn’t start with Trump — it started with Republicans in the House, who casually tried to extort concessions by refusing to raise the debt limit.
But one thing I haven’t seen much discussion of is the question of why Trump imagines that we have a severe debt problem, requiring extraordinary measures. Here, after all, is what U.S. interest payments look like:

050716krugman1-tmagArticle

See the crisis? Neither do I.
But Trump, we can assume, doesn’t look at economic data, or for that matter employ anyone who can. Remember how unemployment is really 42 percent? What he does do is pick up stuff that everyone around him says.
And here’s the thing: claims that America is facing a debt crisis have been all over the political landscape for years... So it’s not really surprising that Trump, who doesn’t know much about policy, would pick up on all this buzz, and not get the memo that it’s all really about finding excuses to slash social programs. And he knows, or thinks he knows, a lot about being overextended on credit; so let’s declare bankruptcy and make a deal!
The point is that this isn’t coming solely from the would-be ignoramus-in-chief...

    Posted by on Saturday, May 7, 2016 at 07:20 AM in Economics, Politics | Permalink  Comments (70)


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