Krugman Overboard! Says Economic Policy a 'Horrifying Failure'

Originally posted by shaneslaughta
The US government could pull us out of this economic slump, if it was not a manufactured crisis.

absolutely! the whole thing is manufactured.. the US is NOT BROKE!

not even close.. the employment division is broke.. the people are just in the employment division.

there are so many outstanding loans, resources, etc.. the Country is Flush.

read the CAFR1..

Originally posted by RedShirt73

Take for example:

Increase the minimum wage the US to $15.00/hr. This would more then likely cause an uptick in the US economy as people would have more money to spend/save. .

It's a nice Utopian thought to give everyone a minimum of $15 an hour but it isn't realistic. Also, people would not then have more money to spend, because business has repeatedly demonstrated that it will not simply absorb those new figures into the budget. They would first reduce their workforce to accommodate the additional hit to the payrolls, and then raise the prices of the products or services provided, thereby negating the positive impact of a higher wage for everyone in the workforce, regardless of whether they made $25,000 a year or $100,000 a year.

reply to post by usernameconspiracy


This is what the economists are saying but I don't see it. Yes, the prices of services would go up on some things but your forgetting that these same business would still be bringing in billions of dollars in profit. The ones that can't survive, well it's like I said, they fail and someone else will come along and fill in the gap created. So instead of Wal-Mart making $8 Billion/year, after the wage increase they would make lets say $5 Billion/year. I'm pretty sure the owners of these companies can take the hit.

Just to throw it in there, I am downloading this debate between Ron Paul and Paul Krugman so I have not seen it yet... But when it comes to a simple, sensible, and understandable economy and what money really is.. I lean to Ron Paul's beliefs, along with my own ideas.

I also read ZeroHedge a lot, and I expect an article from them very soon on this Krugman realization. I have been waiting for him to shriek 'eureka' and jump ship for awhile now, and people everywhere are jumping the status quo's "ship" more and more recently, imo.

reply to post by HanzHenry


Care to link to a legitimate and verifiable copy of a national CAFR we can all read and see? I'll tell you, the last one I saw that indicated anything worth seeing? Came over 8 years ago....and today, I'm lucky to find one at all with the data I'm looking for.

Meanwhile. I can show down to line items, where the vast majority of that 17 trillion in debt is being held, what form it's being held in and generally speaking, how it's being held today. There is almost nothing this Government doesn't record, track and report just because it can.

If we're flush, you'll really need to support that by more than opinion. After all, it's not just "conventional wisdom" or "TPTB" that would be calling wrong, but pretty much everyone with informed opinions on this. I've rarely seen anyone take the position that we actually have plenty of money....and never, once, have I seen it supported to any notable extent. Be the first?

Not spending enough money? Is krugman really crazy or what?

Do people know what globalism is and how to deal with it if anyone really wanted to?

Cheap labor can be offset by tariffs. Its the only way! The globalists run WTO and outsource everything without giving a dime to the national security and well being of any nation.

Just looking at the trade deficit with china the past 20 years is enough to make anyone crazy.

I dont have a doctorate degree but some things SHOULD be easy to spot!

SIGH! Krugman is a shill just like bernake and the rest of the federal reserve mafia. It is a liberal disease of spening more to make more, except corps take the money and run like bandits to asia. People be dammed, the economy be dammed.

Its almost like saying we need war to boost the economy again. Some people apparently are retarded!

I believe people are reading this wrong.

Krugman is a full-on Obama chugger.

They will be blaming Republicans for "not spending enough". Not Obama. I don't know why the article says he is criticizing Obie.

Originally posted by RedShirt73
reply to post by usernameconspiracy

 

This is what the economists are saying but I don't see it. Yes, the prices of services would go up on some things but your forgetting that these same business would still be bringing in billions of dollars in profit. The ones that can't survive, well it's like I said, they fail and someone else will come along and fill in the gap created. So instead of Wal-Mart making $8 Billion/year, after the wage increase they would make lets say $5 Billion/year. I'm pretty sure the owners of these companies can take the hit.

edit on 6-9-2013 by RedShirt73 because: (no reason given)

But these are publicly traded companies. Simply accepting a $3 billion/year hit on profits is not beholden to the stock holders. And unfortunately, the stockholders have the power, as they are the most important above anything else. Increase those dividends. Even if it means reducing workforce and raising prices. Show me the CEO willing to take that hit in the interest of the workforce and the economy, and I'll show you a board of directors and majority stockholders who will gladly replace that CEO.

reply to post by wrabbit2000


Last time I wandered over to the CBO's website, the best I found was the discretionary budget for Congress in excel format. No CAFR equivalent. Poking around now on the site and still haven't found anything that appears to be a CAFR. This is the closest thing I could find: www.cbo.gov...

www.census.gov...

Its right there in black and white. Visit the link and find out! Official government source.

Originally posted by Philippines
Just to throw it in there, I am downloading this debate between Ron Paul and Paul Krugman so I have not seen it yet... But when it comes to a simple, sensible, and understandable economy and what money really is.. I lean to Ron Paul's beliefs, along with my own ideas.

I also read ZeroHedge a lot, and I expect an article from them very soon on this Krugman realization. I have been waiting for him to shriek 'eureka' and jump ship for awhile now, and people everywhere are jumping the status quo's "ship" more and more recently, imo.

well there u have it. and that's only some of the hogwash he spilled on tv. if he really knows that you have to spend then why didnt he and bernanke put the money in the hands of the working class? they kept adding deficit with each year but keeping the funds within the boundaries of government and the banks.

then he slyly meanders around the question of whether printing money reduces the value of the currency. pretending to not know that as they print more, prices rise while salaries stay the same. then people's salaries do less for them as their expenses rise. only the filthy rich and upper echelons wont feel the recession pains because they have more than sufficient amounts to pad their spending.

someone knowing of these patterns in recession and depression, can easily prolong a depression because it means their areas of work will benefit from more luxury as the money is quickly and easily passed back and forth between 2 hands to simulate growth. just by advocating such measures politically, and as though ignorant of the true effects on the general population and where the true benefits are gained. capitalizing on the ignorance of the masses with a seemingly complex system of paperwork.


What Ron Paul is advocating is precisely what Iceland did.

reply to post by usernameconspiracy


I would fight it too if i had a business in the US, the less i have to pay for labour, the more profit i make
And of course there are enough ways to evade tax.

reply to post by arjunanda

Krugman... writes totallackeyshould have spent three times the amount of money it did to get the economy back on its feet:

There! According to this DOUCHEBAG idiot the way to solve the debt problem is SPEND MORE THAN YOU ARE EARNING!?!?!

Three cheers for this MORON!!!

reply to post by RedShirt73


There's also another problem with such a minimum wage increase that's rarely discussed, that being that you can't increase production levels quickly enough to compensate for it. The end result is that you'll have a spike in demand due to the higher disposable incomes, but little to no increase in the supply of goods and services that can be bought with it. The end result will be higher price levels to absorb it.

In economics, this is called demand-pull inflation.

If you want to increase actual wealth, concentrate not on wages and number of dollars a person has, but purchasing power and the amount each dollar will buy.

reply to post by EarthCitizen07


Govt Source? published no less.

Boy.. just OOZING with credibility.

Govt has never fudged numbers on reports in publishes?



The Govt is a Mafia? Yes,

criminal enterprise? Yes.

since when are there NOT 2 SETS OF BOOKs?

His solution is to spend 3x the amount of money? 3x the amount of debt? So, instead of $85 Billion / month pumped into the economy by the Fed, he's saying $255B/month?

Yeah, ok pal. Sounds like a recipe for disaster, and a way for some well connected people to get rich, rich, rich!.

Originally posted by HanzHenry
reply to post by EarthCitizen07

 

Govt Source? published no less.

Boy.. just OOZING with credibility.

Govt has never fudged numbers on reports in publishes?

The Govt is a Mafia? Yes,

criminal enterprise? Yes.

since when are there NOT 2 SETS OF BOOKs?

Well if official sources confirm there is a problem then obviously it must be worse in real life since they tend to under-report stuff in their favor, which means what you say only adds more credibility to my facts.

I dont understand what your point was anyway. Are you trying to deny there has been a severe trade deficit with china and other asian nations?