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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsPaul Krugman- The Forever Slump
Its hard to believe, but almost six years have passed since the fall of Lehman Brothers ushered in the worst economic crisis since the 1930s. Many people, myself included, would like to move on to other subjects. But we cant, because the crisis is by no means over. Recovery is far from complete, and the wrong policies could still turn economic weakness into a more or less permanent depression.
In fact, thats what seems to be happening in Europe as we speak. And the rest of us should learn from Europes experience.
Before I get to the latest bad news, lets talk about the great policy argument that has raged for more than five years. Its easy to get bogged down in the details, but basically it has been a debate between the too-muchers and the not-enoughers.
The too-muchers have warned incessantly that the things governments and central banks are doing to limit the depth of the slump are setting the stage for something even worse. Deficit spending, they suggested, could provoke a Greek-style crisis any day now within two years, declared Alan Simpson and Erskine Bowles some three and a half years ago. Asset purchases by the Federal Reserve would risk currency debasement and inflation, declared a whos who of Republican economists, investors, and pundits in a 2010 open letter to Ben Bernanke.
more
http://www.nytimes.com/2014/08/15/opinion/paul-krugman-the-forever-slump.html?_r=0
merrily
(45,251 posts)When General Electric owes no taxes, but a bus driver does, something is very wrong. And it involves politicians as well as big business.
Scuba
(53,475 posts)merrily
(45,251 posts)Johonny
(20,817 posts)and there isn't much push back to date.
n2doc
(47,953 posts)Repubs act like making a balanced budget would be a piece of cake. No one calls them on this BS. Even Paul Ryan can't make his budget work without magic ponies.
In reality, people should be told the truth- If you really want a balanced budget, you are going to have to pay more in taxes, especially if you are a millionaire. Or, You are going to have to have a smaller military. ANd you are going to have to plan for paying much more for your medical expenses and your own retirement when you get old. And you can kiss clean air and water and food goodbye.
WinkyDink
(51,311 posts)n2doc
(47,953 posts)former9thward
(31,923 posts)Not just the 1%.
WinkyDink
(51,311 posts)former9thward
(31,923 posts)WinkyDink
(51,311 posts)"During the campaign four years ago, then-Senator Barack Obama called for families making over $250,000 a year to return to their Clinton-era of income tax rate of 39.6 percent, up from 35 percent under President Bush."
http://crooksandliars.com/jon-perr/15-things-gop-doesnt-want-you-know-about-taxes-debt
http://www.perrspectives.com/blog/archives/002049.htm
former9thward
(31,923 posts)It was a bad decision. Nobody should have tax cuts at any level when we are broke and fighting a war.
former9thward
(31,923 posts)Millionaires just don't do it no matter how much they are demonized. Your second point is also true, mostly. We need a significantly smaller military. Which will mean layoffs on a massive scale. I believe your point about air, water and food is incorrect. The amount in the budget for those items is a flyspeck.
edhopper
(33,465 posts)would be fixed by raising the cap, so no on those two items. Considering the top 10% pay 70% of income tax and you combine that with removing the special treatment of capital gains, you make a big step, so yes, it is largely the millionaires.
merrily
(45,251 posts)PowerToThePeople
(9,610 posts)merrily
(45,251 posts)hifiguy
(33,688 posts)Just wait for the next Repuke president.