KRUGMAN: "austerity has been a failure everywhere it has been tried"

[kpete]

....................

The other thing you need to know is that in the face of the current crisis, austerity has been a failure everywhere it has been tried: no country with significant debts has managed to slash its way back into the good graces of the financial markets. For example, Ireland is the good boy of Europe, having responded to its debt problems with savage austerity that has driven its unemployment rate to 14 percent. Yet the interest rate on Irish bonds is still above 8 percent — worse than Italy.

The moral of the story, then, is to beware of ideologues who are trying to hijack the European crisis on behalf of their agendas. If we listen to those ideologues, all we’ll end up doing is making our own problems — which are different from Europe’s, but arguably just as severe — even worse.

http://www.nytimes.com/2011/11/11/opinion/legends-of-the-fail.html

[doc03]

1. A couple years ago the Republicans touted Ireland

as the "Irish Miracle". Don't hear anything but crickets now about that one.

[xchrom]

2. Recommend

[bemildred]

3. I don't understand why anyone would think it would work in the first place.

If you want a robust economy, you cannot cutback spending. When you have a robust economy, THEN you can reduce the deficit, like Clinton did.

[JHB]

14. They believe in confidence fairies...

...to repeat a term Krugman has used in other posts.

The argument/belief is that the crisis is due to or made worse by a lack of confidence, and that by cutting government red ink confidence will be restored. However, that theory assumes that it is the confidence of financial markets that is paramount (over, say, confidence of consumers they will have jobs), and even there the reality is that the austerity cutbacks just create more uncertainty.

[Merlot]

25. The only thing they believe in is cutting gov't

Everything else, including their "theories" is just a means to that end.

[leveymg]

4. The Catfood Commission and Super Committee will be Obama's legacy contributions

to an era of economic mismanagement and policy error on the grandest possible scale.

[Javaman]

5. and now they are going to try it in Italy.

I'm traveling there in March, maybe I can pick up a Da Vinci or two cheap.

the right wing world.

[TheKentuckian]

6. What kind of ruthie colada does one have to be double fisting

to think it would be beneficial?

It is a lame brained excuse to gut government services to those that need them most, at best, at worst a willful plot to destroy the world economy for individual private gains and power.

Hang em high!

[tblue]

7. You just described the Shock Doctrine.

Better believe the vultures are lined up and ready for a feast.

[Canuckistanian]

19. Privatization. That's what it's all about

Make no mistake. It's the first AND the end goal.

[saras]

8. He's wrong because he's wrong about the GOALS and PURPOSES of austerity. He's too idealistic.

[lame54]

10. you are the lone dissenter so please explain

[Fumesucker]

13. I can explain..

Whether austerity is considered a failure or not depends on your point of view and your aims.

If your aims are to shovel as much money to the 1% as possible and screw the 99% then austerity is a major success.

[lame54]

15. that may be the hidden purpose...

but the public explanation is to revive the economy

[Fumesucker]

16. Politicians lie..

It's what they do..

[lame54]

21. and krugman knows that

[Kaleko]

26. If I may...

The goals and purposes of austerity are to commit a form of social genocide.
A poor and hopelessly indebted populace is reduced to wage slavery for several generations while the richest 400 families swoop down in their jets and buy everything of any value in the nations they have financially destroyed for pennies on the dollar.

It's 1929 all over again. Only worse. Much worse this time.

[Rex]

12. Okay I will bite, what are the true purpose and goals of austerity programs?

I won't hold by breath waiting for an answer.

[WillyT]

9. HUGE K & R !!!

:kick:

[redqueen]

11. K&R

[LWolf]

17. k&r

[suffragette]

18. K&R

[hunter]

20. When the economy stagnates, with the scum floating to the top...

... the solution is not complicated.

You create jobs and money for the people who have nothing, and you prevent inflation by taxing the wealthy.

"Austerity" is when the government creates more money for the wealthy and prevents inflation by starving everyone else.

Austerity is the modern form of feudalism. When the lord masters of this economy mismanage their estate, they continue to feast as the serfs starve.

[RainDog]

22. k&r n/t

[NOMOREDRUGWAR]

23. Michelle Bachmann clearly knows more than that idiot Krugman

After all, what does he have? He only has a doctorate in economics. She has a law degree from a school that no longer exists plus she has RUN HER OWN BUSINESS. Clearly more qualified.

We obviously just need to cut more and more spending because that has worked great so far. And we need more huge tax cuts as well.

The stupidity hurts so much.

[fishwax]

24. k/r

:kick:

[moondust]

27. Hijacking!

Republicans started "hijacking the European crisis" shortly after Cameron and others in Europe started their austerity junk.

Robert Reich has suggested something like prohibiting serious austerity measures until the unemployment rate is below 5%. Makes sense.

[Kablooie]

28. Republicans have been wrong about every single thing recently.

I don't think there has been one single issue that they've been right on.

And they persist in pushing more. It's breathtaking.