Joe Scarborough Is Wrong About The Deficit — But For A Much Different Reason Than People Realize

[xchrom]

http://www.businessinsider.com/why-joe-scarborough-is-wrong-about-the-deficit-2013-3



***SNIP

Our favorite commentary on this came from Richard Koo, who explained the problem with addressing long-term deficits while also stimulating in the near-term.

He likened addressing both concepts to a doctor upbraiding a patient in intensive care about whether they can afford treatment. It's indecent. The patient is dying. Save the patient. Then figure it out!

Arguing need for longer-term fiscal consolidation is irresponsible
The insistence that fiscal consolidation is necessary in the longer term is like the doctor who, faced with a patient who has just been admitted to the intensive care ward, repeatedly questions the patient about his ability to afford the treatment. This is both lacking in decency and irresponsible.

If the patient loses heart after learning the cost of the treatment, he may end up spending even longer in the hospital, leading to a larger final bill. Completely ignoring the policy duration effect of fiscal policy and constantly insisting on longer-term fiscal consolidation was what prolonged Japan’s recession.

For instance, it was because Japan’s policymakers refused to give up the medium-term fiscal consolidation target of achieving a primary fiscal balance by 2011 that the government stumbled from fiscal stimulus to fiscal retrenchment and back again and, ultimately, was unable to meet its fiscal targets even once in the last 20 years.

That is why Japan’s recession lasted as long as it did and why the nation’s debt has risen to some 200% of GDP.


Read more: http://www.businessinsider.com/why-joe-scarborough-is-wrong-about-the-deficit-2013-3#ixzz2MfglKWOy

[malaise]

1. Joe Scum is a classic example of someone believing that being media saavy

makes one an expert on all subjects. On no day of the week can Joe Scum win an argument with Krugman - not if the audience has one iota of intelligence or information.

I'd love someone to find one interview with Joe Scum where he condemned Cheney's comment that deficits don't matter.

[xchrom]

2. +1

[PETRUS]

3. Eschaton agrees with malaise

And implies it's a deliberate mismatch, posting:

"Poor Paul

It's part of the media game that they'll put up somebody who knows nothing about anything relevant against someone who does as if they're all the same."

http://www.eschatonblog.com/2013/03/poor-paul.html

[xchrom]

4. thanks - that's very interesting. nt

[malaise]

7. It's all BS

Joe Scum knows nothing about anything - he just bullshits his way with ReTHUG talking points. The saddest part is that he thinks he's a leading voice of moderation when he's a two bit hack for the ReTHUG version of corporate America.

I detest that lil weasel who still hasn't adequately explained that dead intern in his office. He can come up with any old Krugman quote he likes but that dead girl isn't going away.

[kelliekat44]

5. I just can't watch early morning MSNBC any more. nt

[99Forever]

6. Lovely graph.

Hmmm.


Just where is War Machine Death spending located on it?

Or is that free?

[MiniMe]

9. Looks like the graph came from GWB

Totally ignore the defense spending

[MiniMe]

8. How is Social Security part of the debt and spending?

Social Security has 0 to do with the debt, it is already funded.