Krugman: We’re in a depression, you know

posted at 4:16 pm on May 1, 2012 by Ed Morrissey

I’m pretty sure this isn’t helpful for the Obama re-election campaign message.  His ads talk about the Great Recession, and how his audacious leadership has led us out of it into … oh, I guess we can call it the Great Stagnation.  Paul Krugman’s declaration of a depression interferes with that message just a tad, no?

A few points of fact to check on Krugman’s employment claims, before people assume he’s wrong.  He is actually correct on the stats for public and private sector employment, but only to the limited context and meaning he uses.  From the BLS, here is the chart for private-sector employment over the last 10 years:

And here is the same chart for government employment:

The missing context of private-sector employment is population growth.  The better way to view whether we’ve returned to the level of employment at the start of Obama’s term is to look at the participation rate in the labor force, and that shows something significantly different:

Of course, this doesn’t break out private vs public employment, but the difference in public employment in that time is about 500,000 jobs.  That would account for 0.32% in the participation rate.  Adding them back in would move the participation rate from 63.8% (nearly a 30-year low) to 64.1%, still significantly below the 65.8% when Obama took office, or the 65.7% when the recovery started.

As far as this causing a depression at the moment, that’s as silly as Krugman claiming that the US has made any kind of “misguided budget cuts.”  What budget cuts?  We cut the rate of increase in the budget, but we’re still above $3.7 trillion annually, which is a third more than in FY2007, with four straight trillion-dollar-plus deficits.  We aren’t even in a recession, let alone a depression, at least not as economists (such as Krugman) define the terms.  We would have to have two sequential quarters of negative growth to be in a recession.  We’ve had several quarters of stagnation during the recovery, but none yet of negative growth.  Nor would the cause of negative growth be a reduction in government workers, which as the chart shows, peaked during the early days of the Obama term without prompting any real growth, either.

However, maybe we shouldn’t point out these facts.  If the Left wants to argue that Obama has led us into a depression, far be it from me to dissuade them.


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Comment pages: 1 2

I’m depressed that idiots like Paul Krugman still have jobs.

search4truth on May 1, 2012 at 4:19 PM

Did you hear I got Bin Laden?
 
- President Barack H. Obama

rogerb on May 1, 2012 at 4:19 PM

We are in the midst of the liberal medias attempt to be actual journalists for the week. Next week, back to blame Bush and Romney’s dog in an effort to cover for Obowma’s dismal economy.

dthorny on May 1, 2012 at 4:19 PM

MSNBC: Breaking News

Paul Krugman Outted As Right-Wing Fanatic – To Be Dealt With After Re-Election.

OhEssYouCowboys on May 1, 2012 at 4:20 PM

tinkering around the margins with cuts that really don’t affect much of anything does not make for massive or “misguided” budget cutting.

Warner Todd Huston on May 1, 2012 at 4:20 PM

its bin laden NOT the economy stupid

gerrym51 on May 1, 2012 at 4:21 PM

What a dick.

Red Cloud on May 1, 2012 at 4:21 PM

MSNBC: Breaking News

In a gesture of goodwill, Vladimir Putin offers to house Paul Krugman in the Lubyanka, until after stunning re-election of Obamuh. Pending “wrecking” charges, under Article 58.

OhEssYouCowboys on May 1, 2012 at 4:22 PM

Another Depression with another socialist in office

Oil Can on May 1, 2012 at 4:22 PM

Bush!!!

faraway on May 1, 2012 at 4:24 PM

The best thing is when Krugman and O’Reilly were both guests on a show and O’Reilly was so livid and looked like he was going to seriously stand up and kick Krugman’s ass and Krugman actually looked nervous as if he expected it at any moment.

nitzsche on May 1, 2012 at 4:24 PM

Did you hear I got Bin Laden?

- President Barack H. Obama

“4 more years of Bin Laden staying dead”.

Would Romney assure that Bin Laden stays dead?

No, Romney is the shaky sort of leader who would let a Zombie Bin Laden rise from his watery grave and continue to attack America… only Obama will prevent this future attack, from the past attack, that again only Obama could have done.

So vote for Obama for the future, because of the past… in the present.

Holy crap, I’m thinking and typing like Biden… My head hurts.

These colors sound funny.

gekkobear on May 1, 2012 at 4:25 PM

Did Paul get fired?

Recession is when a neighbor loses his job. Depression is when you lose yours. And recovery is when (Barack Obama) loses his. ~ Ronald Reagan (updated)

Fallon on May 1, 2012 at 4:25 PM

Krugman is a blithering idiot. ’nuff said.

Turtle317 on May 1, 2012 at 4:25 PM

Voters are worried and upset.

Liars figure.

Watch for the hocus pocus charts coming to a media near you.

IlikedAUH2O on May 1, 2012 at 4:26 PM

Just to be clear:

This is the same fellow who wrote a NYT piece wishing for an extra-terrestial invasion …

(let’s savor that for a moment …………….)

mmmmmm, yeah, OK then.

Are we in a Depression? Oh good lord, of course, we are.

Does Paul Krugman have some special insight we need to consider?

Loop back to the second line above:

Anybody need to do that more than once?

Didn’t think so.

PolAgnostic on May 1, 2012 at 4:26 PM

nitzsche on May 1, 2012 at 4:24 PM

And you just know that Krugman has had that same look, from his Kindergarten recess days and on.

OhEssYouCowboys on May 1, 2012 at 4:26 PM

Krugman has fallen off the cliff…

CoffeeLover on May 1, 2012 at 4:26 PM

I can’t tell the difference between Krugman and a Cairn Terrier

faraway on May 1, 2012 at 4:27 PM

I can’t tell the difference between Krugman and a Cairn Terrier

faraway on May 1, 2012 at 4:27 PM

Hopefully, and for the Cairn Terrier, Obamuh can.

OhEssYouCowboys on May 1, 2012 at 4:28 PM

Ron Paul took down Paul Krugman on Bloomberg yesterday, for those who haven’t already seen it:

http://www.youtube.com/watch?v=BcuAOdXD0Go

FloatingRock on May 1, 2012 at 4:30 PM

How depressed is Krugman going to be when Obama is out of office?

Depressed enough to quit? We can only hope so..

ProfShadow on May 1, 2012 at 4:30 PM

I knew that we were on the precipice of another depression. You know, the one that Obama saved us from.

Who gets the blame for giving us the final push over the edge?

You get three guesses.

Curtiss on May 1, 2012 at 4:31 PM

If an insider true believing leftist says we’re in a depression, the Republicans must be looking great in the races.

Transpo on May 1, 2012 at 4:31 PM

I’ll give this to Krudman, he’s got real sack to cash a paycheck from anyone.

SMACKRUNNER on May 1, 2012 at 4:34 PM

Who really cares what this wrongman wingnut dingbat socialist liberal shill has to say.

All I see is “Paul Krugman blah blah blah” and I move on to the next article.

AttaBoyLuther on May 1, 2012 at 4:34 PM

But… he killed OBL!

Ukiah on May 1, 2012 at 4:34 PM

I feeel so enlightened now. NOT.

Mirimichi on May 1, 2012 at 4:34 PM

Cairn Terrier

Cairn terriers are cute, intelligent creatures. Krugman, well, he’s one of those 3 things, anyway. I think…

…Could be a machine, I suppose…

Dirty Creature on May 1, 2012 at 4:34 PM

Mayday! Mayday!

faraway on May 1, 2012 at 4:34 PM

The kindest thing to say about Krugman is that he’s a “Former Enron Advisor.”

n0doz on May 1, 2012 at 4:35 PM

MSNBC: Breaking News

Paul Krugman now says that Republican generated depression will end when $35,000,000,000,000 more is pumped into economy. Obamuh now acknowledges both Krugman and depression, and hails his efforts to save America.

Nation awaits Krugman opinion on ObamuhCare and immigration.

OhEssYouCowboys on May 1, 2012 at 4:36 PM

Bedwetter

jake-the-goose on May 1, 2012 at 4:38 PM

Who really cares what this wrongman wingnut dingbat socialist liberal shill has to say.

All I see is “Paul Krugman blah blah blah” and I move on to the next article.

AttaBoyLuther on May 1, 2012 at 4:34 PM

best description of Krugman yet…..

chai on May 1, 2012 at 4:40 PM

We will be in a depression, if we listen to Krugman.

rickv404 on May 1, 2012 at 4:40 PM

that’s as silly as Krugman claiming that the US has made any kind of “misguided budget cuts.” What budget cuts?

To the Defense Department?

Oh, and by the way, if you’re going to have budget cuts don’t you have actually have a budget?

rbj on May 1, 2012 at 4:40 PM

tinkering around the margins with cuts that really don’t affect much of anything does not make for massive or “misguided” budget cutting.

Warner Todd Huston on May 1, 2012 at 4:20 PM

You miss the point- many states are not tinkering around the edges but making deep budget cuts that result in deep layoffs.

At the aggregate level, this depresses consumer demand and gives corporations- which are sitting on records level of cash- little reason to accelerate growth plans or hiring.

I’m depressed that idiots like Paul Krugman still have jobs.

search4truth on May 1, 2012 at 4:19 PM

You may not agree with Krugman’s politics, but his economics are sound. Unless you subscribe to Joe the Plubmer economic ‘theory.’
Economies like the UK that decided to follow the path of deep cuts, before their economies had recovered, are experiencing serious problems and returning to prolonged recessions. Austerity is killing Europe.

bayam on May 1, 2012 at 4:41 PM

“We aren’t even in a recession, let alone a depression, at least not as economists (such as Krugman) define the terms. We would have to have two sequential quarters of negative growth to be in a recession.” – Ed

We’re running $1.3trillion deficits – and the G part of GDP is government spending – and having less than 2% growth (voodoo match, no doubt). What part isn’t contraction?

John_G on May 1, 2012 at 4:42 PM

“misguided budget cuts”

Nothing but drivel from that poser.

flstc on May 1, 2012 at 4:43 PM

What a dick.

Red Cloud on May 1, 2012 at 4:21 PM

Perfectly and succinctly written!

Typicalwhitewoman on May 1, 2012 at 4:44 PM

Krugman didn’t revisit his hope for a space alien invasion to jump-start the economy??

Bitter Clinger on May 1, 2012 at 4:46 PM

Economies like the UK that decided to follow the path of deep cuts, before their economies had recovered, are experiencing serious problems and returning to prolonged recessions. Austerity is killing Europe.

Except the UK didn’t make any cuts. They barely cut the rate at which spending increases.

If they would have followed the true austerity that the Baltic countries implemented, they would be seeing economic improvement.

weaselyone on May 1, 2012 at 4:47 PM

…it’s the ECONOMY stupid…!!!
.
.
.
….all these other distractions… are just bedwetting.

KOOLAID2 on May 1, 2012 at 4:47 PM

budget cuts? please explain with specifics

burserker on May 1, 2012 at 4:49 PM

You miss the point- many states are not tinkering around the edges but making deep budget cuts that result in deep layoffs.

Except California. They aren’t making any cuts and their economy is booming…oh wait, nevermind.

States are required to balance their budget. They can’t endlessly borrow money against future generations. Which states are you referring to?

weaselyone on May 1, 2012 at 4:50 PM

Economies like the UK that decided to follow the path of deep cuts, before their economies had recovered, are experiencing serious problems and returning to prolonged recessions. Austerity is killing Europe.

bayam on May 1, 2012 at 4:41 PM

Liar.

There were no cuts here in the UK, just tax hikes on “The Rich”.

For the last time, there are no net spending cuts

The economic facts have now become wholly decoupled from the dominant media narrative. Most people believe – because most journalists tell them – that public spending is falling sharply, that debt is being repaid and that this process, while possibly necessary, is jeopardising short-term growth. Every one of those propositions is false.

mudskipper on May 1, 2012 at 4:52 PM

Economies like the UK that decided to follow the path of deep cuts, before their economies had recovered, are experiencing serious problems and returning to prolonged recessions. Austerity is killing Europe.

bayam on May 1, 2012 at 4:41 PM

BS- Austerity measures are purposeful to regain control and stabilize economies- not to induce a “growth” situation. The “Austerity is killing us” meme is premature Socialist pushback in Europe. Their economies are less reliant on the private sector than here in the U.S. They will take longer to rebound.

And now even the occupy aholes in Seattle today are bemoaning American austerity measures. Huh ?

You want a depression ? Keep pissing tax payers “stimulus” dollars down a black hole. Krugman is a socialist who needs vibrant private sector growth to fund his and his minions Utopian dream. Eat the rich today, worry about eating tomorrow. Sooner or later, you run out of someone elses money.

FlaMurph on May 1, 2012 at 4:54 PM

You may not agree with Krugman’s politics, but his economics are sound.

Bayam – your comments are rich. His economics according to socialist economists (Keynesian) may seem sound, but the history of this logic is evident over the decades. It has not worked. Reagan’s economic examples worked well, even to the point where GHW Bush reaped benefits and even Clinton was able to bask in its glory even though he despised it. GW Bush would have kept it going with some prodding from conservatives but the country suffered a cockroach (islamist) infestation that we are dealing with even in the oval office.

HomeoftheBrave on May 1, 2012 at 4:55 PM

If you don’t believe in a bright future under Obama you are a traitor and not a patriot…and also a racist…and a hick.

Schadenfreude on May 1, 2012 at 4:56 PM

If they would have followed the true austerity that the Baltic countries implemented, they would be seeing economic improvement.

That would involve cutting loose millions of professionally unemployed Brits who have no useful skills, but would suddenly find their inherent aptitude in setting fires and breaking windows.

Countries who can successfully implement austerity are those whose citizens are used to having nothing and know how to survive absent government, so a temporary downturn that austerity would cause would be taken in stride.

In Western countries that have adopted multi-generational, bloated, dependency-fostering welfare states, there are only two ways out. A slow, decades-long unwind where we phase out entitlements (not likely as politicians will fight the mechanism that keeps their constituents dumb and hopelessly dependent on them)…or a sudden violent crash likely followed by some form of dictatorship.

TheMightyMonarch on May 1, 2012 at 4:57 PM

I’m still trying to figure out how he was awarded a Nobel prize short of buying one.

His ability to state – belatedly – the obvious doesn’t help his case.

It reminds me of the joke about the architect, engineer, and economist who were ship-wrecked on an island . . ..

EdmundBurke247 on May 1, 2012 at 4:58 PM

In Western countries that have adopted multi-generational, bloated, dependency-fostering welfare states, there are only two ways out. A slow, decades-long unwind where we phase out entitlements (not likely as politicians will fight not vote to end the mechanism that keeps their constituents dumb and hopelessly dependent on them)…or a sudden violent crash likely followed by some form of dictatorship.

Fixed.

TheMightyMonarch on May 1, 2012 at 5:01 PM

Except the UK didn’t make any cuts. They barely cut the rate at which spending increases.

If they would have followed the true austerity that the Baltic countries implemented, they would be seeing economic improvement.

weaselyone on May 1, 2012 at 4:47 PM

You can’t compare a E. European countries with depressed wages, low standards of living and populations smaller than NYC to developed countries.
In fact, the UK made significant budget cuts:
http://online.wsj.com/article/SB10001424053111903999904576467943082839426.html?mod=WSJ_latestheadlines

Even budget hawks with real economic credentials, including Reagan man Richard Posner will testify that any and all spending cuts will damage the recovery. It’s amusing to hear Tea Party ‘experts’ expect growth to emerge from cuts:

Anything that takes money out of the economy, such as reducing federal spending or increasing federal taxes, will exacerbate the current depression. Consumers will have less money to spend, and this will discourage employers from hiring. So the reforms that I have been discussing should be phased in gradually over a period of years.

bayam on May 1, 2012 at 5:01 PM

Countries who can successfully implement austerity are those whose citizens are used to having nothing and know how to survive absent government, so a temporary downturn that austerity would cause would be taken in stride.

You mean like another great despression temporary downtown? Yes, it’s time to embrace structural failure of the economy and US financial system. Go Greece. What are some of you people smoking…

bayam on May 1, 2012 at 5:03 PM

It reminds me of the joke about the architect, engineer, and economist who were ship-wrecked on an island . . ..

EdmundBurke247 on May 1, 2012 at 4:58 PM

I haven’t heard that one but it doesn’t sound like it ends well for the economist.

Bitter Clinger on May 1, 2012 at 5:03 PM

Hasn’t this mutt taken every side of an economic issue over his career? Maybe it was the other mutt Thomas Friedman.

DanMan on May 1, 2012 at 5:04 PM

0bama using the same techniques as FDR (without the useful projects) will result in the same economic results.

jukin3 on May 1, 2012 at 5:04 PM

Maybe this is his campaign for little Bammie’s next multi-hundred billion dollar stimulus? Just in time for the election? He’s started up all that infrastructure nonsense again.

slickwillie2001 on May 1, 2012 at 5:07 PM

Nonsense, Krugman!

Didn’t you hear the Administration say otherwise over the last three years? They saved the economy!

Why do you hate black people and apple pie?

Good Lt on May 1, 2012 at 5:07 PM

FLASH! Navy Seals take out Krugman!

MaiDee on May 1, 2012 at 5:08 PM

Anything that takes money out of the economy, such as reducing federal spending or increasing federal taxes, will exacerbate the current depression. Consumers will have less money to spend, and this will discourage employers from hiring. So the reforms that I have been discussing should be phased in gradually over a period of years.

It will, but the harder and quicker the crash, the faster and more robust the recovery. Neither Hoover nor FDR understood this, just as Bush and Obama didn’t. Allow the economy to find its natural bottom, and the bad debts will clear out of the system.

Unfortunately, our economic policy is “avoid deflation at all costs”. A healthy round of deflation would actually be healthy for us. It allows distressed assets to be purchased for pennies on the dollar and rewards savers. All the “print to infinity” policy is accomplishing is driving investors into riskier investments, punishing savers with low interest rates, and papering over the problem, namely an excess of debt in the system.

TheMightyMonarch on May 1, 2012 at 5:11 PM

We aren’t even in a recession, let alone a depression, at least not as economists (such as Krugman) define the terms. We would have to have two sequential quarters of negative growth to be in a recession.

NEWSFLASH: Adjusted for population growth and the REAL inflation rate, we have had 7 negative quarters in a row.

logis on May 1, 2012 at 5:17 PM

When you’ve lost Krugman….

Fighton03 on May 1, 2012 at 5:18 PM

You mean like another great despression temporary downtown? Yes, it’s time to embrace structural failure of the economy and US financial system. Go Greece. What are some of you people smoking…

bayam on May 1, 2012 at 5:03 PM

The Great Depression was anything but a temporary downturn. Absent government intervention we would have recovered within two years, tops. New Deal policies helped ensure that it lasted a decade followed by a world war. We only recovered because Europe was devastated and we still had production capacity.

I agree with you that we’re headed for economic destruction (and I don’t see how we realistically avoid it), but I’m not going to embrace it. The enthusiasm that the “let it burn” crowd might not last when millions of Americans starve and what’s left of our constitutional republic is replaced by something much worse.

TheMightyMonarch on May 1, 2012 at 5:19 PM

Austerity is killing Europe.

bayam on May 1, 2012 at 4:41 PM

And what brought the “Austerity’s” necessity if not profligate spending on social programs propped up by borrowed money?

You really have a chicken and egg thing going there, the way out is to look at results of the policies that caused the problem.

Difficultas_Est_Imperium on May 1, 2012 at 5:24 PM

What Obama has done to the USA will go beyond the word “depression”.

albill on May 1, 2012 at 5:30 PM

Krugman is an “economist” much the same way that Zero is a “leader” – on paper. And yes, both of them are depressing.

ghostwalker1 on May 1, 2012 at 5:31 PM

I can’t tell the difference between Krugman and a Cairn Terrier

faraway on May 1, 2012 at 4:27 PM

Cairn Terriers are smart. And, they’re not cat people.

Not that I’m ripping on cat people, just pointing out that Cairn Terriers would much prefer chasing a cat than hanging with one.

totherightofthem on May 1, 2012 at 5:38 PM

EdmundBurke247 on May 1, 2012 at 4:58 PM

Don’t tell that to joana. She thinks Krugman is a scholar’s scholar. A real genius.

totherightofthem on May 1, 2012 at 5:40 PM

He is correct that cuts in government spending and reduction in government jobs is a drag on the economy, and might be one of the reasons why we are not growing as fast as we should be and the unemployment rate remains elevated. But his answer to the debt question was to blow it off by saying the markets don’t think it’s a problem right now; well that’s fine, until they do think it’s a problem, and then we’re really in trouble. Right now US bond yields remain low because we are the safest game in town. If that ever changes, watch out.

Mr Krugman is a classical Keynesian, so this explanation is not surprising – he reads the standard Keynesian talking points well. (The “Depression” tagline is merely hyperbole intended to sell his book.) But government borrowing will need to be paid for eventually – if interest rates rise, the interest payments on the debt will overwhelm our ability to pay – and he never addresses that; he simply waves his hands and says that once things are better, we will deal with the debt. How? If the key to an expanding economy is government spending, then cutting spending is surely not on the table … so that leaves tax increases.

TouchdownBuddha on May 1, 2012 at 5:43 PM

My unemployed liberal arts college friend said it’s all Bush’s fault!

nextgen_repub on May 1, 2012 at 5:54 PM

Ed should’ve linked to Ron Paul destroying Krugman yesterday.

Paul vs. Paul

Dante on May 1, 2012 at 5:57 PM

We will put money back into the economy by taking money out of the economy and taxing it on the way through.

Yeah that ought to work!

Krugman is not an economist (& it was a Nobel Award not Prize) he is a propagandist, a highly paid one.

jukin3 on May 1, 2012 at 6:00 PM

You may not agree with Krugman’s politics, but his economics are sound. Unless you subscribe to Joe the Plubmer economic ‘theory.’
Economies like the UK that decided to follow the path of deep cuts, before their economies had recovered, are experiencing serious problems and returning to prolonged recessions. Austerity is killing Europe.

bayam on May 1, 2012 at 4:41 PM

You do know that they raised taxes, right?

Right?

Uh-huh………try the blue pill.

98ZJUSMC on May 1, 2012 at 6:03 PM

The reality is the BEA and the BLS manipulate the data.

For example:

http://www.consumerindexes.com/

FTA:

“Once again the BEA has used “deflaters” that will strain the credibility of the public, especially if they buy gasoline. To correct the “nominal” data into “real” numbers the BEA assumed that the annualized inflation rate during 1Q-2012 was 1.54%. As a reminder, lower “deflaters” cause the reported “real” growth rates to increase — and once again very low seasonally adjusted BEA inflation “deflaters” have been the headline number’s best friend. If the raw “nominal” numbers were instead “deflated” by using the seasonally corrected CPI-U calculated by the Bureau of Labor Statistics (BLS) for the same time period, nearly the entire headline growth rate vanishes — and the resulting growth rate would have been a minuscule 0.08% with “real final sales” contracting.”

Emphasis mine.

They LIED.

dogsoldier on May 1, 2012 at 6:06 PM

Forgot to add, 0.08% GDP isn’t negative growth. I don’t think GDP has been much higher than this in reality.

Employers seem to know it.

dogsoldier on May 1, 2012 at 6:09 PM

You are missing two things:

The benefits of big government spending. We have electric cars that don’t work, GSA videos, roads paved and research done without the pesky private market, workers at home for years on temporary unemployment benefits, and a host of other goodies. Most importantly, you can take care of a growing base of voters and doners to keep you in power.

Aside from that you CAN pay the debt. As soon as the jobs come back from Asia and we have a technology which someone else does not steal and produce without a big government burden. You know, like Dodd Frank, the EPA, OSHA, unions and even property rights to stand in the way of the drive for returns. Read China, Inc.

The future is not a sweet socialist state with equality and dream social programs.

Maybe we can print a ton of paper dollars now. But if we do, we had better be ready to end about half of all government before the guy calls for the payment of the party bill. And he will call.

IlikedAUH2O on May 1, 2012 at 6:11 PM

TheMightyMonarch on May 1, 2012 at 5:19 PM

Bayam and those that wish to lavish praise on failed Keynesian policies really need to go read Karl Denninger (http://market-ticker.org/akcs-www?singlepost=2830228) , then maybe Zerohedge to dislodge their head from sand, butt, etc. There’s no nice way out of it and printing like he’s advocating just makes the car that’s out of control gain speed. He’s a disaster for the Obama admin – let them have him.

SkinnerVic on May 1, 2012 at 6:11 PM

If the key to an expanding economy is government spending, then cutting spending is surely not on the table … so that leaves tax increases.

I’d love to ask this dolt (Krugman) how we tax our way out of $100 trillion in unfunded liabilities to Social Security and Medicare. That’s $100 trillion in today’s dollars, with a GDP of roughly $13 trillion.

TheMightyMonarch on May 1, 2012 at 6:13 PM

And debt is not the same to a government as it is to a household just adding to it and doing a Ponzi on piles of bills.

But I wonder why the Europeans keep talking about rich French, British and German aunts and uncles helping them out…

IlikedAUH2O on May 1, 2012 at 6:16 PM

Nothing like a summer of depressing recovery to help Obama get a second term.

WhatNot on May 1, 2012 at 6:16 PM

MSNBC: Breaking News

Paul Krugman Outted As Right-Wing Fanatic – To Be Dealt With After Re-Election.

OhEssYouCowboys on May 1, 2012 at 4:20 PM

..when Obama thinks he will have more flexibility?

The War Planner on May 1, 2012 at 6:20 PM

TheMightyMonarch on May 1, 2012 at 6:13 PM

The Buffett Tax! Just don’t look at the fact that it only pays 6 Billion. It will pay more with enough inflated dollars!

IlikedAUH2O on May 1, 2012 at 6:21 PM

Ahh, the Krugster. Always good for a laugh as he’ll almost always leave himself some wiggle room to later say he was right.

That Paul vs Paul vid is great. Krugler wants a world war to boost the economy heh. Lets start by invading his island home on St. Croix. The 99% I’m sure could use a new vacation home.

oryguncon on May 1, 2012 at 6:22 PM

“My Hero!”

bayam

Del Dolemonte on May 1, 2012 at 6:29 PM

You may not agree with Krugman’s politics, but his economics are sound.

bayam on May 1, 2012 at 4:41 PM

Brilliant Satire!

Del Dolemonte on May 1, 2012 at 6:31 PM

What are some of you people smoking…

bayam on May 1, 2012 at 5:03 PM

Obviously nothing as good as the stuff you are!

Care to share your stash, Tommy?

Del Dolemonte on May 1, 2012 at 6:33 PM

Austerity is killing Europe.

bayam on May 1, 2012 at 4:41 PM

Always the dupe.

What killed them is their years of socialistic policies.

CW on May 1, 2012 at 6:36 PM

The depression could have ended in late 09 or early 10 if we let the market correct itself. Instead it dragged on and on because of the Fed.

The only way to get out of this depression is to cut debts. You can’t grow out of it because it is not an inventory crises it’s a credit crises.

jdun on May 1, 2012 at 6:39 PM

You miss the point- many states are not tinkering around the edges but making deep budget cuts that result in deep layoffs.

The reasons states are laying off workers is they cannot afford to pay the benefits promised to their retired employees. The only way to get out from under these obligations is to reorganize under bankruptcy protection. You often have to go thru a period of pain after making bad economic decisions. Having the federal government give these states money only postpones the day of reckoning.

Paul Krugman does not accept this. For example, after the NASDAQ bubble, he advocated a housing bubble to enable the bloated economy to continue at an unhealthy level. Bubbles occur because of bad allocations of resources. The only way to recover is to liquid these bad investments and recover what assets you can in order to reinvest them and hopefully make the economy grow.

Laurence on May 1, 2012 at 6:39 PM

Always the dupe.

What killed them is their years of socialistic policies.

CW on May 1, 2012 at 6:36 PM

Only a fool think that Austerity is killing Europe. It’s not it probably the best thing that happen to Europe in a long time. They need to cut spending and start producing.

jdun on May 1, 2012 at 6:42 PM

What are some of you people smoking…

bayam on May 1, 2012 at 5:03 PM

Obviously nothing as good as the stuff you are!

Care to share your stash, Tommy?

Del Dolemonte on May 1, 2012 at 6:33 PM

..Jeeeeee-zus! Does that clown rage on like that all the time, DD? Hasn’t his idiot’s license expired by now?

The War Planner on May 1, 2012 at 6:47 PM

Dang, I never thought I’d see this day… Paul Krugman right about something.

He’s right so far as us being in a depression, he’s wrong about pretty much everything else though.

What Mr. Krugman and his ilk never seem to grasp is that government is the enemy of liberty and prosperity — the more government does, the more it takes from the people the less of either we have. More government isn’t the solution, it’s the problem.

If Mr. Krugman were anything other than a partisan hack he’d be arguing for less government… for less spending and less regulation and for more free enterprise.

jasetaro on May 1, 2012 at 6:50 PM

Krugman. What a squatch.

thirtyandseven on May 1, 2012 at 6:53 PM

NEWSFLASH: Adjusted for population growth and the REAL inflation rate, we have had 7 negative quarters in a row.

logis on May 1, 2012 at 5:17 PM

I’ve been banging that drum for a while. “Welcome to the party, pal!”

How do you get “budget cuts” when you have no budget? Krugman is looking a bit stupid, not that he hasn’t in the past as well.

Voter from WA State on May 1, 2012 at 6:50 PM

Elephant in the room award winner, right there.

dogsoldier on May 1, 2012 at 6:54 PM

Del Dolemonte on May 1, 2012 at 6:33 PM

..Jeeeeee-zus! Does that clown rage on like that all the time, DD? Hasn’t his idiot’s license expired by now?

The War Planner on May 1, 2012 at 6:47 PM

bayam was one of the more illustrious under-the-bridge-dwellers at Ed’s Captain’s Quarters, along with the always hilarious sesquipedalian and Tom_Shipley.

Talk about The Three Stooges…

Del Dolemonte on May 1, 2012 at 7:10 PM

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