Krugman: Let's Take a Hike

[Stuart G]

published 4/24/11
Paul Krugman

http://www.nytimes.com/2011/04/25/opinion/25krugman.html?_r=1&hp



When I listen to current discussions of the federal budget, the message I hear sounds like this: We’re in crisis! We must take drastic action immediately! And we must keep taxes low, if not actually cut them further!

You have to wonder: If things are that serious, shouldn’t we be raising taxes, not cutting them?

My description of the budget debate is in no way an exaggeration. Consider the Ryan budget proposal, which all the Very Serious People assured us was courageous and important. That proposal begins by warning that “a major debt crisis is inevitable” unless we confront the deficit. It then calls, not for tax increases, but for tax cuts, with taxes on the wealthy falling to their lowest level since 1931.

And because of those large tax cuts, the only way the Ryan proposal can even claim to reduce the deficit is through savage cuts in spending, mainly falling on the poor and vulnerable. (A realistic assessment suggests that the proposal would actually increase the deficit.)

[abelenkpe]

1. Yeah those low taxes for the wealthy back in 1931

turned out to be disastrous for the country then and would do the same now. The similarities between today's crisis and that of depression are eerie: real estate bust, construction way down, income disparity, unions under attack, even scapegoating of immigrants. Not a fun time. Probably not a good idea to repeat it.

[Curmudgeoness]

2. Everyone already knows that tax cuts will not help the deficit.

Even Ryan and his cronies know this. The purpose of this fight is to "reduce the size of government", which has been the only thing that the Repugs are wanting to do. They always have, and they have told us over and over.

[midnight]

3. K&R... Tax cuts to reduce the deficit people like Paul Ryan think the

poor and working folks believe his nonsense....