Krugman: 'There Is No Light At The End Of This Tunnel'

[Derechos]

New York Times columnist Paul Krugman said Sunday that the debt deal will worsen the current unemployment situation and the nation's long-run fiscal situation.

"From the perspective of a rational person -- in other words a progressive -- we shouldn't be talking about spending cuts at all now," Krugman said during a roundtable discussion on ABCNews' This Week With Christiane Amanpour. "We have 9 percent unemployment. These spending cuts are going to worsen unemployment. It's even going to hold the long-run fiscal picture because we have a situation where more and more people are becoming permanent long-term unemployed."

snip

"We used to talk about the Japanese and lost decade," Krugman continued. "We'll look at them as a role model. They did better than we're doing. this is going to go on. I have nobody I know who thinks the unemployment rate will be below 8 percent at the end of next year. With the spending cuts it might be above 9 percent at the end of next year. There is no light at the end of this tunnel. We're having a debate in Washington, all about, 'Gee, we'll make the economy worse, but will we make it worse on 90 percent of the Republicans' terms or 100 percent of Republicans' terms?' The answer is 100 percent."

http://www.huffingtonpost.com/2011/07/29/debt-ceiling-deadline-default_n_913809.html#411_krugman-there-is-no-light-at-the-end-of-this-tunnel

[yourout]

1. But there might be a train.

[katnapped]

3. Well the bus isn't quite big enough

To run us all over with

[Kolesar]

2. I agree

Saw this on the Greatest Page:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x1620462
"duplicate"

[mzmolly]

4. We're talking about cuts, over a ten year

period.

[enlightenment]

6. I suspect Dr. Krugman knows that.

And he still thinks it's a crappy idea. Since he's the respected economist and you're . . . what, exactly? . . . I'm a bit more willing to find his assessment of the situation rational.

[mzmolly]

7. It's a shame the Dr. didn't mention that if

he does. He's not the only economist with an opinion. He's simply an economist who has bashed Obama (preferring a second President Clinton) since Obama ran for office.

[WinkyDink]

9. You mean the President Clinton of "surplus" fame? THAT President Clinton?

[mzmolly]

13. I mean Hillary Clinton.

Krugman's choice for President.

[WinkyDink]

8. Cuts, nonetheless. AS IF 9/11 was that long ago?? (THAT is what "ten years" feels like.)

[Tierra_y_Libertad]

5. But, there will be a large pond of piss from this iidiotic contest.

[bvar22]

10. It is really very simple.

"Democrats" do NOT Cut Government Spending and "Trim" the Safety Net
during Recessions & Jobs Crisis.
THAT is Conservative Faith Based Republican DOGMA.
I say "Faith based" because it has NEVER WORKED.

Democrats INCREASE Government Spending in direct Job Creation,
and STRENGTHEN the Safety Net (Social security, Medicare, Medicaid, Social Assistance).
THAT is what should be preached from the Bully Pulpit.

Even suggesting a willingness to cut Social Security/Medicare
is a kick in the nuts for ANY real Democrat.



Who will STAND and FIGHT for THIS American Majority?
You will know them by their WORKS,
not by their excuses.

[mmonk]

11. This is what people out there don't get because of the false framing

and the politicians. The people believe what they are told to. This is because they don't understand.

[democracy1st]

12. K & R