Paul Krugman: Getting out of the Financial Crisis

[orange11emilie]

Either this guy is a puppet or he does not know what he's talking about.

[ronpaulfan1]

AUSTRIAN Econoimcs.... NOT keynesian... keynesian theory has ruined our country.... go read a book on Austrian Econoimcs!!

[finarrykahn13]

I want to hear an actual Keynesian help me here. How does spending and artificial infusion of credit / monetary supply not result in destructive inflation? Aren't the Consumer Price Indexes going up? Aren't oil and gold and other commodities at all time highs? Can someone explain what increased spending will do but increase consumption and demand, not savings and production? I am an economics neophyte drawn more to Austrian economics, but want to hear the other side of the story fairly.

[tlw1951]

@finarrykahn13

Interest rates as Zero and high unemployment = reduced demand = even more unemployment.

Break the downwards spiral by creating demand with investments in the future like education and infrastructure.

Keynes breaks down when a knot head politician spends a budget surplus on war and tax breaks instead of retiring debt.

[Pglarsen]

Yeah. Why don't Americans nationalize all their currency markets? Then they will copy the guys they were fighting in The Cold War.

[Steve458791]

Lets just bail everyone out. Forget we are spending trillions we don't have.

[kingsleykillz]

I believe you are referring to diction. You prefer: how high, over how much.

[Offatwork]

There is a reason why health costs are so high right now and it has a lot to do with the perverse taxes and government regulations within the system. Why on earth people seem to think more regulations, or that individuals don't spend their money more efficiently than government are absolutely absurd. Even behavioral economics doesn't try to claim this.

[thesparitan]

wrong I have read behaviorist and what they have found is something much different

my favorite example is a medical procedure that has a 90% survival rate if you say you have a 10% mortality rate people are less incline to take the treatment. so information give to people in different ways even though its the same can effect a decision and in fact people are fair from rational

[kingsleykillz]

Please enlighten me, list the perverse taxes and regulations of the healthcare system and how they raise health care costs.

[stopworth]

how come everyone on the internet acts like they know what they're talking about?

soundmoneyfan, Mises and Hayek are just as flawed as Keynes. the chronicle of human history is people making it up as they go along.

[Offatwork]

Mises and Hayek have never been wrong in their economic analysis. The reason why no one adopts their policies is because they are considered "inflexible old men" economics. They don't like easy-credit, they don't like bubbles, they don't like government control over the market because they know it will always ultimately fail and they don't want that on their hands.

[fps0chris]

read the failure of new economics by henry Hazlitt for anyone who likes Keynes

[soundmoneyfan]

haha, what a hack. how can you say keynes is so great when it holds no value or regard to capital. this hole in the keynes theory is how our federal reserve blindly holds to keynes as they run from one bubble to the next. the misallocation of capital from fed policy is the reason we live in these booms and bust. keynes is flawed, mises and hayek were right! keynes can never work in a free society...hmmmm...i wonder why govts like it so much. it has stood for 70 years...the ground is shaking

[nookatee]

keynes-ian economics oversaw the greatest and most sustained boom in the History of the American economy from roughly 1947 to 1974. The fed is crumbling now because it's gotten away from Keynes-ian economics. Listen to the man, he's the best and brightest in the world.

[soundmoneyfan]

he's a bright one sure, but i want to hear a sound arguement about how the government can properly allocate capital that would best serve the market whenever the market has the fianl say on which investments are sound. he supported the idea of a bilout, bankruptcy is healthy for the market, it purges the economy of bad companies and bad management. yes it would have hurt if AIG went bankrupt, but the people it would hurt the most are the bankers. But they have power so they get a bailout

[fps0chris]

maybe if the fed didn't exist...

[beancube2008]

We need to own our banks or this crisis will come back just simple as that. We need transparency to access them, use them as often as possible like our freeways, and use them often enough to own them. Use them enough to make them non-profit so they become un-speculat-a-ble, but operational. Evolve money into useful tools, not evil psychology.

[soundmoneyfan]

beancube, wrong wrong wrong, we need the federal reserve to not keep pumping these bad banks with liquidity, the fed casued this, you should be smart enough to see that. The Fed can print itself into trouble but it can not print it's way out, they have to loot the tax payer as you see today.

[kingsleykillz]

How much have taxes actually gone up?

[soundmoneyfan]

?? dunce, when i said "loot the tax payer" i was talking about TARP, which was wall street looting the tax payer, any light bulbs?

[kingsleykillz]

Thanks for the clarification, but please tell me how I was personally looted. I would like to know, snide remarks on my intelligence aside.

[soundmoneyfan]

TARP money was tax dollars, if you pay taxes, you got looted. since our gov't is broke, it was really just added to the deficit, which is funded thru the sale of bonds that are backed by the treasury dept which is funded by tax payers. i'm not saying that paulson took money from your checking account, but the treasury was looted by the bankers after they ran their firms in the ground. the debt, down the road, will be paid by inflation which will make you feel the affects of the looting later

[Turnedleaf]

Are you an idiot ? Try read soundmoneyfan again....

[beancube2008]

Human efforts produced useful material resources. Human efforts created useful technology, productivity & management. How much money should we print label all these human efforts? Banks tried handling this task for us when demand is there. However, when skewed speculating volume rose, they mislabeled as real demands. They can't spot gaps among Capital, Labor Effort, Real Resource Distribution. Labels (like contracts, credit, rebate, payments etc ...) all over places waited for creative frauds.

[beancube2008]

All analysts need to explain why printed money dominates in trade and nobody is able to promote new vehicles? Is money being controlled similarly like combustion engines need cruel oils that handicap our accessing options and labor effort? Why should human effort be suppressed by printed cash for accessing basic necessity when trade credit can be extended to points beyond recoverable repeatedly? How cash legal such context? Automate first our access (don't rip us off), then trade.

[AFRIKTODAY]

Just another economic fascist. Take control of what? By whom? Are you crazy dude!! I build my company and should be accountable for its failures and profits. As an entrepreneur, I am a risk taker, and if my business plan does not pan out the way I expected, I should sink ALONE instead of taxing everybody else for A RESCUE; while a body of BUREAUCRAT ARE TAKING CONTROL OF MY COMPANY! This seems to stem right out of the COMMUNIST MANIFESTO! You KRAZY KRUGDUDE? Is this America or sovietISM?

[scientrophic]

@AFRIKTODAY Have you read the Communist Manifesto? No one cares whether your small business succeeds or fails. It isn't like your business is the lynchpin for American liquidity, which when removed, results in a financial meltdown of the world economy. The world isn't as simple as communism vs. capitalism. Those are ideologies dreamed up by people. They're clever, but dated. Do you use the Bible to design an airplane? Why would you apply Marx or Adam Smith when to these modern problems?

[Carolab]

YES

[ABOSOLUTEKNOWLEDGE]

foreign council?

lol

one of the illuminati melting pot