KRUGMAN-Aren't you glad that the government is now being run by people who dont hate government?

[kpete]

Averting the Worst

By PAUL KRUGMAN
Published: August 9, 2009

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

And aren’t you glad that right now the government is being run by people who don’t hate government?

We don’t know what the economic policies of a McCain-Palin administration would have been. We do know, however, what Republicans in opposition have been saying — and it boils down to demanding that the government stop standing in the way of a possible depression.

I’m not just talking about opposition to the stimulus. Leading Republicans want to do away with automatic stabilizers, too. Back in March, John Boehner, the House minority leader, declared that since families were suffering, "it’s time for government to tighten their belts and show the American people that we ‘get’ it." Fortunately, his advice was ignored.

I’m still very worried about the economy. There’s still, I fear, a substantial chance that unemployment will remain high for a very long time. But we appear to have averted the worst: utter catastrophe no longer seems likely.

And Big Government, run by people who understand its virtues, is the reason why.

more:
http://www.nytimes.com/2009/08/10/opinion/10krugman.html?partner=rssnyt&emc=rss

[Hippo_Tron]

1. Well quite frankly if you ask some on DU, they would've preferred the banking system to collapse

And some here say that "Great Depression II" was just propaganda to get us to accept TARP. But yes I agree with Krugman.

[robinlynne]

4. not to collapse. but for the banks to be broken up into smaller banks.

[TheWraith]

2. Now watch Krugman be attacked by the DU Depression brigade.

The people who seem to be obsessed with telling us all that society as we know it is over and it'll be decades before we have an economy again.

[Zodiak]

6. Actually, all I see are the "here comes the XXXXXXX brigade" people

Who treat DU like a high school locker-room, pre-emptively reacting to rival cliques, but contributing little themselves.

Too many people on DU are obsessed more with DU internal clique politics than the larger issues at hand, it seems. At least that is what can be surmised from this kind of post.

[Solly Mack]

3. K&R

[flyarm]

5. hey Paul..utter catastrophe is when people lose their jobs , millions of them and

they can't feed their kids , they are losing their homes, there are no jobs in sight unless they are part time service jobs that won't pay any of the bills..and utter catastrophe is when those same people are out of work, out of a home and can't buy food and then one of their kids gets sick and they can't afford a doctor..so your idea of utter catastrophe may be one kind of utter catastrophe ...but to many Americans perhaps millions of them, are right now..in an utter catastrophe ..and now the same people who created their utter catastrophe are in charge of getting us out of ..your idea of utter catastrophe ..

But you say there is a "a substantial chance that unemployment will remain high for a very long time"..well Paul that means the very folks you write your opeds to, can look forward to a very long utter catastrophe...with no end in sight!

[Tierra_y_Libertad]

7. Government bungling isn't "as bad" as corporate bungling?

Another, larger, stimulus might help the economy. Then again, it might make it worse. But, where's the money for the money for the stimulus to come from?

Obama and his gurus are now preaching "fiscal responsibility" to our creditors, mainly the Chinese, to keep them buying our debt. So, what does "fiscal responsibility" mean? It means more cuts to infrastructure, higher taxes, more unemployment.

The only way out of this catastrophe (and it is a catastrophe) is for American consumers to start buying again. But, there's a catch. The American consumers are broke because they don't have jobs. The one's who still have jobs are faced with pay cuts, or not having jobs.

It's a Catch-22 economy. People aren't buying stuff because they can't. Which means that the people who make the "stuff" are being laid off. Which means that they can't buy stuff. The banks won't make loans to anyone to buy stuff except those that don't need loans. Those that still have money, and still buy stuff, buy imported stuff because it's cheaper and they can afford to buy it.

When, and if, the "recovery" ever comes it will mean lower paid jobs and a lower standard of living for most people.

The politicians, bankers, and economists aren't running the economy. The economy is running them...and us.

[TheWraith]

8. Kicking and recommending.

I don't always agree with Krugman, but at least he recognizes that things are getting better.

[applegrove]

9. I was just saying that the other day. I love it when krugman expands on a theme I think is important

[applegrove]

10. I was just talking about this a few days ago. I love it when krugman

happens to expand on a topic I think is important.

[Romulox]

11. Wish that Big Government valued common people as much as Corporations.

The "crisis" is long past, but common people are still waiting for their $4 T bailout... :shrug:

[Wednesdays]

12. K&R

:kick: