Paul Krugman: "We tried to stimulate the economy, and it didn’t work." A poor excuse for inaction

[Better Believe It]

Op-Ed Columnist
No, We Can’t? Or Won’t?
By PAUL KRUGMAN
July 10, 2011

Excuse No. 4: We tried to stimulate the economy, and it didn’t work.

Everybody knows that President Obama tried to stimulate the economy with a huge increase in government spending, and that it didn’t work. But what everyone knows is wrong.

Think about it: Where are the big public works projects? Where are the armies of government workers? There are actually half a million fewer government employees now than there were when Mr. Obama took office.

So what happened to the stimulus? Much of it consisted of tax cuts, not spending. Most of the rest consisted either of aid to distressed families or aid to hard-pressed state and local governments. This aid may have mitigated the slump, but it wasn’t the kind of job-creation program we could and should have had. This isn’t 20-20 hindsight: some of us warned from the beginning that tax cuts would be ineffective and that the proposed spending was woefully inadequate. And so it proved.

It’s also worth noting that in another area where government could make a big difference — help for troubled homeowners — almost nothing has been done. The Obama administration’s program of mortgage relief has gone nowhere: of $46 billion allotted to help families stay in their homes, less than $2 billion has actually been spent.

Read the full article at:

http://www.nytimes.com/2011/07/11/opinion/11krugman.html?_r=1&ref=opinion

[dkf]

1. Nobody spent that money, not even the states.

People saved the tax rebates and state governments used it to issue less debt.

You can give the money, but you can't make others spend it.

[FreakinDJ]

2. Maybe the Tax Breaks to Outsourse American jobs should END

[Better Believe It]

5. Right. Whatever happened to that "tax reform"? Why hasn't Obama fought for it?

[Dept of Beer]

9. You see his hands are tied on that one because whatever congress

passes he is honor bound to sign?

:shrug:

[Dept of Beer]

10. Oh, wait a minute.

:sarcasm:

[Hydra]

3. Trickle down fails again

But somehow trickle down is the only answer.


Myths that kill 101

[Kat45]

4. He's speaking the truth; why isn't anybody listening?

Particularly anyone in power?

[markpkessinger]

6. Sadly, he was speaking the truth over two years ago...

...when he tried to sound the alarm that the stimulus was too small and too comprised of non-stimulative tax cuts to be effective. Nobody listened then, either.

[steelmania75]

7. I wish Paul Krugman and Robert Reich had a voice in Washington.

[Better Believe It]

11. They are liberals so they don't.

[Liberalynn]

13. Me too

[bvar22]

8. All according to plan, my Pretties.

Aside from that, how did you enjoy the Kabuki Theater?
Did you appreciate how well Choreographed it was?

Cherish your memories,
because we're TAKING everything else!
Hahahahahahaha! SUCKER.

[somone]

12. He tried and fought so hard but they wouldn't let him

:sarcasm: