The Austerity Delusion - Krugman

[groovedaddy]

Portugal’s government has just fallen in a dispute over austerity proposals. Irish bond yields have topped 10 percent for the first time. And the British government has just marked its economic forecast down and its deficit forecast up.

What do these events have in common? They’re all evidence that slashing spending in the face of high unemployment is a mistake. Austerity advocates predicted that spending cuts would bring quick dividends in the form of rising confidence, and that there would be few, if any, adverse effects on growth and jobs; but they were wrong.

It’s too bad, then, that these days you’re not considered serious in Washington unless you profess allegiance to the same doctrine that’s failing so dismally in Europe.

It was not always thus. Two years ago, faced with soaring unemployment and large budget deficits — both the consequences of a severe financial crisis — most advanced-country leaders seemingly understood that the problems had to be tackled in sequence, with an immediate focus on creating jobs combined with a long-run strategy of deficit reduction.

http://www.nytimes.com/2011/03/25/opinion/25krugman.html?nl=todaysheadlines&emc=tha212

[GreenPartyVoter]

1. In the USA, the austerity move has nothing to do with bolstering the economy and everything to do

with the rich robbing everyone else blind.

[Jackpine Radical]

3. It's the same in Europe.

It's just that they have a little more "socialist" spirit to crush in their citizens before they can rip off everything.

[msongs]

2. Maybe we can get a big shot from tax-avoiding GE to come tell us how to do things? nt

[abelenkpe]

4. Austerity measures are

a way for republicans to slash social programs and privatize as much as possible to the detriment of the community at large. It also helps with their plan to smash unions. And is a great way to undo the benefits of last years stimulus and increase the downward spiral of the economy. Their hope is that as things get worse, the present administration will take all the blame and they will regain power.

We cannot let this happen!

[Martin Eden]

5. The A-Team Loves it when a Plan Comes Together

The A-Team (Assholes, you know who they are) finally are seeing their plan come together -- shrink government down to a size where it can be drowned in a bathtub. Grover Norquist is grinning ear to ear.

Ya think the tanked economy and huge deficits are simply the unfortunate byproduct of bad policies and lack of government oversight?

Remember, this is all part of the PLAN.

[dawg]

6. And yet, many here on DU fall for the right-wing frames.

People talk about spending ourselves into oblivion, the fed "printing" money, and such. They don't realize they are playing into the hands of the enemy. When it comes to running a large current deficit in order to stimulate employment, the only thing we have to be afraid of is being too afraid to do right by our unemployed. It's almost like, the only thing we have to fear is .. 'er, 'um, ..... being afraid!