Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

LiberalElite

(14,691 posts)
Fri Jul 4, 2014, 10:08 PM Jul 2014

Krugman: Build We Won't

http://www.nytimes.com/2014/07/04/opinion/paul-krugman-build-we-wont.html?action=click&contentCollection=U.S.&module=MostEmailed&version=Full®ion=Marginalia&src=me&pgtype=article

-snip-
You often find people talking about our economic difficulties as if they were complicated and mysterious, with no obvious solution. As the economist Dean Baker recently pointed out, nothing could be further from the truth. The basic story of what went wrong is, in fact, almost absurdly simple: We had an immense housing bubble, and, when the bubble burst, it left a huge hole in spending. Everything else is footnotes.

And the appropriate policy response was simple, too: Fill that hole in demand. In particular, the aftermath of the bursting bubble was (and still is) a very good time to invest in infrastructure. In prosperous times, public spending on roads, bridges and so on competes with the private sector for resources. Since 2008, however, our economy has been awash in unemployed workers (especially construction workers) and capital with no place to go (which is why government borrowing costs are at historic lows). Putting those idle resources to work building useful stuff should have been a no-brainer.
-snip-
6 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Krugman: Build We Won't (Original Post) LiberalElite Jul 2014 OP
Hear the crickets? Anansi1171 Jul 2014 #1
Speaking of housing bubbles... Erich Bloodaxe BSN Jul 2014 #2
What would it have fetched in 2009, at the bottom to the market? Fred Sanders Jul 2014 #3
here's the democrats' jobs/infrastructure plan....oh wait, they don't have one nt msongs Jul 2014 #4
Sure they do... 1StrongBlackMan Jul 2014 #6
I didn't realized we have a flat tax on gasoline - hedgehog Jul 2014 #5

Anansi1171

(793 posts)
1. Hear the crickets?
Fri Jul 4, 2014, 10:29 PM
Jul 2014

Its beyond tragic that investment of that sort would have raised all boats. That demographic that shall remain nameless listens to their GOPdaddies and really believe we cant spend that money and if we do it will only benefit everyone else.

As a combat vet I am so saddened, but the RWNJs are adamant in their self fulfilling prophecy that this country is toast.

These are the men who would burn the village to save it, and until that stick up the -$$ demographic gets over themselves and wakes up, nothing good can come.

Erich Bloodaxe BSN

(14,733 posts)
2. Speaking of housing bubbles...
Fri Jul 4, 2014, 10:31 PM
Jul 2014

I paid 103k in '99 for my house. The house next door, designed to the same plan, just went for 80k a couple of weeks ago. No housing recovery around here.

 

1StrongBlackMan

(31,849 posts)
6. Sure they do...
Sat Jul 5, 2014, 08:57 AM
Jul 2014

Did you miss the President's Job Plan ... it included a whole section regarding infrastructure.

hedgehog

(36,286 posts)
5. I didn't realized we have a flat tax on gasoline -
Sat Jul 5, 2014, 03:20 AM
Jul 2014

18.4 cents a gallon rather than a percentage of the price like any other sales tax!

Latest Discussions»Issue Forums»Editorials & Other Articles»Krugman: Build We Won't