On invoking the confidence fairy to justify debt reduction. Yes, it's Democratic VSP (very serious people), too.
Nothing new, but nice to hear coming from the bully pulpit.
The New York Times — The Conscience of a Liberal
Things Serious People Believe
Paul Krugman | Professor of Economics, Princeton University
5 comments:
Steny Hoyer says we need "fiscal calm." According to what Matt's been writing lately, things are real calm on the fiscal front. I'm sure the private sector job creating animal spirits will make an appearance... sometime.
Has the confidence fairy ever been sighted? Or is this just another case of Bigfoot?
But then in yesterday's column, http://www.nytimes.com/2013/02/08/opinion/krugman-kick-that-can.html?hp, Krugman says " While it’s true that we will eventually need some combination of revenue increases and spending cuts to rein in the growth of U.S. government debt". So, what does PK believe?
So, what does PK believe?
He believes in the intertemporal government budget constraint.
we will eventually need some combination of revenue increases and spending cuts to rein in the growth of U.S. government debt - Krugman
If we spend more now and get the economy growing, decrease unemployment, the deficit should become smaller without doing anything else and th eproblem should fix itself.
I cringe every time I hear or read someone saying we have to cut the deficit…the deficit is an event that has already happened.
There is little possibility we could do to go back in time and cut it. We don't have that technology yet.
This particular line of thinking reminds me somewhat of my cat chasing it's tail.
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