Paul Krugman and establishment doublethink: it's heating up.

[phesoge]

Woods has talked about this. He is a good resource to look for. I can't post it now because I am at work, but look at the standard off living in the U.S during the war. Rationing of various resources etc...We were not out of the depression during the war. Its a total fallacy

 

[D.A.S.]

I never understood why going to war is supposed to boost the economy. War requires huge amounts of government spending, so where does that money come from? The taxpayer, and the taxpayer is tapped out. It's one thing if a government is running a nice surplus to be able to tap into it for things like defense emergencies, but when a nation is almost 15 Trillion in debt, how is it beneficial to spend more and accumulate more debt? The problem is the lack of employment due to our manufacturing and other productive sectors going overseas, so until we create the business environment to get them to comeback and hire HERE, we will only be digging ourselves deeper.

 

[enjerth]

I liken this to opening the throttle on an engine. It MIGHT lead to increased RPM (economic growth), if the engine isn't running with the CHOKE on. That will flood the engine.

You can't use the fuel (money) and utilize the energy in it (economic growth) when in an oxygen-poor environment (regulations, obstructions to new productivity).

Of course, I believe that the engine can regulate it's own throttle and choke for optimum RPM, and it can forecast the availability of fuel and oxygen to adjust itself accordingly far better than a single operator.

 

[dbill27]

We should start building tanks, submarines, planes etc.. and then promptly blow them up and repeat... This will create wealth.

 

[tremendoustie]

I never understood why going to war is supposed to boost the economy. War requires huge amounts of government spending, so where does that money come from? The taxpayer, and the taxpayer is tapped out. It's one thing if a government is running a nice surplus to be able to tap into it for things like defense emergencies, but when a nation is almost 15 Trillion in debt, how is it beneficial to spend more and accumulate more debt? The problem is the lack of employment due to our manufacturing and other productive sectors going overseas, so until we create the business environment to get them to comeback and hire HERE, we will only be digging ourselves deeper.

Yeah, let's stop producing things that improve people's quality of life, and instead work on creating giant hunks of floating metal, which we will then sink to the bottom of the ocean. We may have next to nothing to eat, but we'll all be "employed". Oh, and many of us will get killed in the process.

These people really are insane.

 

[klhtown]

I honesty cant remember a time when I disagreed more with a political article.


I cant decide if he's trying to sink the economy intentionally or is just plain dumb

that was my thought exactly. enfuriatingly wrong. at least Rick Santorum doesn't make war out to be a picnic. alien invasion my ass...

 

[klhtown]

but the article backs Krugman up with Harvard economist Kenneth Rogoff, who agrees that FED inflation can spur economic growth. do you think he's biased??

"Early in his career, Rogoff served as an economist at the International Monetary Fund, and at the Board of Governors of the Federal Reserve System." -Wikipedia

 

[anaconda]

How is this man regarded as anything more than an absolute buffoon? Do people actually listen to this drivel?

He never sounds very compelling IMHO.

 

[Brian4Liberty]

I never understood why going to war is supposed to boost the economy. War requires huge amounts of government spending, so where does that money come from? The taxpayer, and the taxpayer is tapped out. It's one thing if a government is running a nice surplus to be able to tap into it for things like defense emergencies, but when a nation is almost 15 Trillion in debt, how is it beneficial to spend more and accumulate more debt?

You answered your own question. It boosts the economy of the bankers (and the Oligarchy/Corporatocracy). The business of bankers is to lend money, and what better way to spur business than through war? Everyone needs to borrow. All of the governments involved need to borrow. People whose economies are destroyed will most likely be lured into borrowing and incurring crushing debt while rebuilding. People can be controlled through their debt. War is good for bankers.

It is also very good for the arms industry, which is intertwined with the Corporatocracy. It is good for the petroleum industry, both through increased demand and destruction of international competitors. It is good for international natural resource exploiters. No better way to get you off your land or out of your business than to drop a bomb on you, kill you, or send you out to die in a war.

No doubt Krugman understands these concepts all too well. His mission is to deceive the ignorant masses.

 

[Travlyr]

You answered your own question. It boosts the economy of the bankers (and the Oligarchy/Corporatocracy). The business of bankers is to lend money, and what better way to spur business than through war? Everyone needs to borrow. All of the governments involved need to borrow. People whose economies are destroyed will most likely be lured into borrowing and incurring crushing debt while rebuilding. People can be controlled through their debt. War is good for bankers.

It is also very good for the arms industry, which is intertwined with the Corporatocracy. It is good for the petroleum industry, both through increased demand and destruction of international competitors. It is good for international natural resource exploiters. No better way to get you off your land or out of your business than to drop a bomb on you, kill you, or send you out to die in a war.

No doubt Krugman understands these concepts all too well. His mission is to deceive the ignorant masses.

And what better way to create jobs than to bring Halliburton (careers) in to rebuild the infrastructure after the bombings. Halliburton creates some really good jobs ... travel the world, good pay, pride in rebuilding, great retirement program ... endless supply of work and money too.

 

[specsaregood]

that was my thought exactly. enfuriatingly wrong. at least Rick Santorum doesn't make war out to be a picnic. alien invasion my ass...

for future reference you should avoid using the words Santorum and Ass in near proximity to each other lest people get the wrong idea.

 

[kazmlsj]

Don't we already have the financial equivalent of war - we spend TRILLIONS on the war effort.

I'm confused...

 

[Travlyr]

Unfortunately, some people do listen to him, and this false and irresponsible meme that war spending brought us out of the great depression just continues.

At the end of the war, the US had the only industrial base that had not been bombed out of existence. It was the elimination of industrial competition that gave the US an edge. And in the labor pool, the same thing happened. Millions of workers were killed. After the war, working women left the workforce. The result was a labor shortage, which makes each individual more valuable, and produced more individual wealth among the population, which then contributed to more growth in the economy.

Amazingly, people do still listen to Paul Krugman. I see people still reading The New York Times as well. Why? Bad information will only make their readers look and feel like fools. This is the 21st century. Truth is not hard to find.

 

[Brian4Liberty]

Spending your way to prosperity?

Here is your concise argument: Go get as many credit cards as you can then run them all up to the max and call it prosperity.

Edit: The other 1/2 of the equation is: Somehow you have to pay it back with interest. That can be done as long as the credit card company will extend you more credit. When the credit card company HAS to say NO, then the prosperity is over.

It is probably the plan anyway. And the banker is going to claim ownership of the all goods bought ... mine, mine, mine, the house, the car, the boat, the motorhome, motorcycle, savings, the jewelry, and you can keep the kids... good luck at the shelter.

All roads lead to Goldman Sachs...

http://www.zerohedge.com/news/presenting-mother-all-european-bailout-flowcharts

 

[Lafayette]

You guys like my comment?





What are you talking about?!?! Krugman knows his stuff!

He understand*s that when you create bubbles with debt an cheap printing press money and they pop, you use more cheap money and debt to inflate new ones! You cannot let the illusion of growth and wealth die, right?

"Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment*. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble". - Paul Krugman 2002

If housing bubbles and war spending isn't to your liking, he does alien invasions too!

"If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months," he said. "And then if we discovered*, oops, we made a mistake, there aren't any aliens, we'd be better--"

"There was a 'Twilight Zone' episode like this in which scientists fake an alien threat in order to achieve world peace," Krugman said. "Well, this time, we don't need it, we need it in order to get some fiscal stimulus." - Paul Krugman”

 

[tribute_13]

I have never seen such stubborn comments.

 

[Lafayette]

I have never seen such stubborn comments.

You doubt the ivy league Nobel winner, how dare you sir!

 

[Brian4Liberty]

You guys like my comment?

"Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment*. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble". - Paul Krugman 2002

He loves the bubbles.

 

[Chester Copperpot]

Krugman says that if we do crazy spending on a massive scale the economy will be fixed in 18 months..


well guess what.. if we just let everybody go belly up who deserves to go belly up, the economy will be fixed in 18 months too... But in addition to that, the price of everything from gasoline to apple butter will get cut in half.

and that would be best for the people and the country IMO.