Paul Krugman Supports Stimulus, Warns No Quick Fix

[SubmarineVetOnRite]

Dude flunked speech 101!

[SubmarineVetOnRite]

What a bonehead! Nobel prize? Doesn't he know that Obama said the stimulus package was for shovel ready jobs? Could Obama be WRONG? Reduce spending and do it NOW!!!

[islandmuffin]

@shadowgeyser Go to econjwatch dott org.

[tylerengl102]

The amount of people completely clueless about recession/depression conditions is astonishing. It is a fact that not too long ago, America was in a similar situation; the Great Depression. Although "things have changed", and the situation is not quite as dire as in the 1920's, economic models and recovery plans can still be looked at. For instance, in the Great Depression, the Government did not just throw money at problems in hopes of fixing everything.This is what the Stimulus Package is doing

[marck1ua]

I don't think that Paul Krugman is completely correct about the taxt cuts, although he is somewhat there. He is right that people will save a lot of the extra money they receive from tax cuts, and that is why the cuts should target more than just the consumer. They need to be directed at small businesses so that they gain more of an incentive to hire. From this, more people will be employed and more money will be spent because people will have the money to invest as a result of more job income.

[BrianFEng102]

People having jobs like you said in my opinion is by far going to be the most effective way to pull us out of this economic hole. I think the majority of Obamas focus should be to find ways to do this. infrastructure provides jobs which is why i agree with the money being given to it. Any way to get people working is key. Cuting taxes for the unemplyoed doesnt give them jobs!!!

[FreakishDonQuixote]

I remember a reading study claiming to show that tax cuts are the most inefficient way to get the economy going

[openyourmind678]

That is probably the single most retarded statement I have ever heard. You can find a computer model that proves anything if you really try. If tax cuts don't stimulate the economy than neither would spending ( I think saving is the best solution) and this entire Krugman opinion would be repudiated (which I believe it should be).

[FreakishDonQuixote]

"You can find a computer model that proves anything if you really try."

Computermodel? lol. no.

"If tax cuts don't stimulate the economy than neither would spending"

lol what?

"I think saving is the best solution"

THAT is probably the single most retarded statement ever.

[allgoo19]

FreakishDonQuixote: ""I think saving is the best solution"

THAT is probably the single most retarded statement ever."

You have a winner!! ^_^

[islandmuffin]

@FreakishDonQuixote Peer-reviewed study finds Keynesian Paul Krugman is the most partisan economist. Krugman was the only economist to "significantly" change his stances for partisan reasons. Krugman has even gone so far as to contradict his own findings to bash Republican politicians.

The peer-reviewed research was published in May 2010 issue of the Econ Journal Watch (EJW), edited by Daniel B. Klein.

Seven Nobel laureates are members of the EJW Advisory Council

[blondathart143]

According to Rush Limbaugh, a conservative political commentator, "The average recession will last five months to 11 months. The average recovery from each recession will last six years. What can make the recession worse is the wrong kind of government intervention." I agree with this statement and agree that we should allow the economy to recover on its own.

[allgoo19]

blondathart143:

Limbaugh is nowhere close to qualified as an economist. First, you should stop listening to his show. You are not going to get any real information. Did he tell you where he's got the information form? You don't know but you still believed him.

It's very wishful to think the economy will eventually get better. It can actually get worse and worse and eventual bankrupt.

[jjrglobal]

The only thing that can bankrupt the US is the United States Government's policies of wasteful unproductive spending that burden the producers of wealth through taxation, whether we're taxed today or tomorrow makes no difference. If they borrow the money, then that money cant go to a productive private sector, if they print it it diminishes all of our purchasing power. This isn't hard to understand people, remove head from ass.

[allgoo19]

jjrglobal: "The only thing that can bankrupt ..."

During 40s, 50s, 60s, economy was booming without a hiccup. The tax rate for the most wealthy was over 90% back then.

Can you show me any proof that high tax rate hurt the economy?

[jjrglobal]

I just love this stupid argument. Back then there were loopholes in tax law and you could deduct just about everything from your taxes. Everyone paid far less as a % of their gross income than they do today @38%.

Wouldn't a better question be for you to show me how these high tax rates helped the economy?

The way I would see it is the economy boomed despite the 90% burden on society tax rate.

I assume you get a government check, right?

[allgoo19]

@jjrglobal

"Back then there were loopholes in tax law and you could deduct just about .."

Source of info. will be appreciated. They probably payless now than back then because of *offshore account*.

"show me how these high tax rates helped the economy?"

After nearly 30 yrs of boom then tax cut started in 70., there have never been prolonged economic boom.

Now you answer my qestion.

"proof that high tax rate hurt the economy?"

[jjrglobal]

@allgoo19

Let me guess, you dont pay taxes, do you?

High tax rates hurt the economy by pulling money from the private sector and wasting it through inefficient bureaucratic agencies that produce nothing.

The private sector will always be more efficient than government. Answer this, do you have a better chance of getting a raise at work if your company has more or less money in its bank account? Unless you get a check from the government, high tax rates cannot benefit you.

[allgoo19]

@jjrglobal

"High tax rates hurt the economy by pulling .."

I didn't ask for your explanation. I asked you a proof as in historical fact. Try another answer, I'll wait.

Do I pay tax? Yes, I do, but not a lot.

How about you? Do you make $250,000 yr. after deduction?

[jjrglobal]

@allgoo19

I make around $150 to 200K depending on the year. when the income tax was first put in front of the American people, the way it was sold was that only the top 1% would ever be affected. So dont think that $250K a year will keep you from being in the high tax bracket, the way things are going $250K may be minimum wage per hour. School teachers in Zimbabwe make $30 trillion a month and their currency was equivalent to ours just 30 years ago

[jjrglobal]

@allgoo19

watch?v=6XbG6aIUlog

Please watch this, its how real economics works

[allgoo19]

@jjrglobal

"watch?v=6XbG6aIUlog"

Any 5 yr old kid can agree on certain vide without understanding it.

Try again and answer my question by using your own word.

[jjrglobal]

@allgoo19

Its far too much evidence and information to type in 500 words. But you keep on having that closed idiot mind of yours. You'll never figure out shit, but then again your a professional ninja. Dipshit

[allgoo19]

@jjrglobal

"Its far too much evidence and information to type in 500 words.."

You don't need to use 500 words. All I need is a name of historical incident your comment is based on.

Let me have the same info. you saw.

[jjrglobal]

@allgoo19 1946 biggest economic growth in American history, taxes reduced by 50% and government spending reduced by 75%

[marck1ua]

As a country in need of big change to bring ouselves out of this recession, i believe that it is necessary for us to do it in a way that will be more effective in a shorter period of time.

[marck1ua]

It seems that Paul Krugman isn't so much skeptical about the stimulus package as he is realistic. He understands that we might not see improvements in our economy as a result of infrastructure projects for another couple years. He also recognizes that we will probably see little to no improvements as a result of tax cuts.

[blondathart143]

While Paul Krugman does have many good points, such as timing is key and that the relief won't help us for at least a couple of years. However, what about the here and now? For the present, it seems that moving money through our economy is only doing exactly that; it's not pulling our economy out of the large amount of debt we are currently in. We are in dire need of immediate relief and support of our government.

[BrianFEng102]

What I find interesting about this clip is that Krugman starts out sayin he agrees with the stimulous package, but then just goes on to explain whats wrong with it. Basically his point was that yes it could work but its going to take a while. That being said, I wonder if he or anyone thinks there is a way to correct the economic crisis faster. Is atleast two years like he said really our best bet?

[tylerengl102]

Paul Krugman, a prominent leader in the economical aspects of politics, is announcing his support in a large stimulus package. However, regarding the American Recovery and Reinvestment Act, he is addressing problems. According to Rush Limbaugh, by having too much government intervention, we could be looking at a socialist state. Krugman, however, believes it is necessary. With infrastructure being a large part of the stimulus package, Krugman sees there being no immediate relief for Americans.

[truevoice08]

The great depression was worsened by government intervention, Japan's lost decade was exacerbated by government intervention. History proves Keynesianism is wrong. Milton Friedman debunked Keynes theory. Paul Krugman won Nobel Prize in economics because it is funded by Sweden which is socialist state. Wake up people!

[grantsinmypants2]

Why not ask why the question of why infrastructure is so desperately needed? Why everyone is so over-leveraged on automobiles? Why everyone is enticed to own 1000+ square feet of housing for his personal use?

The answer: No one wants to live next to the welfare criminals which stole our urban areas (nor the leftist intelligensia down the block which enables them).

Where did they come from? Government spending.

[openyourmind678]

type "we hate you" "we hate you" or "Tom Woods on Glenn Beck" and you'll find out exactly what the rest of the wold thinks of our "stimulus package". Maybe now Bush's portrayal of us to the world doesn't look so bad...

[Skorz3ny]

Good video and audio quality :)

[davidmesaaz]

lower taxes more investment = more profits = more taxable income. equals more money for roads and infrastructure.

The two last tax cuts have lead to higher than projected revenue. The deficits which were declining until the FM financial crisis. Deficits are created when you spend more than you receive. During the last decade we had a increase in revenue and spending. In 2001 the budget was 2.2 trillion now its 3.0. which lead to the dollars decline...

[TexanProgressive]

I agree generally, but not all private investments are good. Market forces dictate maximizing profit in the short term. There are lots of important investments (like research for alternative energy solutions) which aren't all that attractive to an investor but are in the interest of the nation. Once the state develops the technology, it can be handed over to the private market. I guess all I am saying is that I think the state has an important role in certain types of investment.

[davidmesaaz]

If you can handle the idea of infrastructure investments or corporate welfare etc.. It makes a lot of sense. But who do we have doing the research? Do we have just a handful of people doing the research ala the Manhattan Project National or the Institutes of Health? Or do we do the Venture Capitalist approach in which we have thousands of people doing research? Do we outsource innovation or do we keep it in house?

[TexanProgressive]

It is a good question. I personally think that a Manhattan Project style effort would be the most effective. When the research is decentralized, you have a lot of people going in different directions and not as organized.

[davidmesaaz]

"people going in different directions and not as organized." But true breakthroughs occur when people do go in other directions....

Well... Silicon Valley is decentralized our University system is decentralized... Our general economy is decentralized

But .Large corporations and government institutions are top down...

Do government institutions and large corporations provide more innovation (centralized) or does silicon valley provide more innovation (decentralized) ...

[davidmesaaz]

The government should fund roads and highways. But the problem is not that we don't spend enough on infrastructure. 2005 highway bill was 300 billion. It was spending on infrastructure where its needed the cities and less where its not. Alaska's bridge to no where is a good example.

[davidmesaaz]

We have the highest corporate tax rates but the lowest collection of corporate taxes as a share of GDP. Flat taxes would eliminate the tax breaks that large corporations get that small to medium size corporations.

The rich can hire tax attorneys to lower the corporate taxes but small businesses don't have resources and the man power. A complex tax code protects large busineses and does not tie them down.

[davidmesaaz]

Krugman won his Nobel on his research on free trade. He has little research experience on Keynesian economics.

[FoShizzle951]

Krugman is the man and, incidentally, has an ENORMOUS DICK!!!

[Loveseekingmissile]

This guy needs to take lessons from Ron Paul. Judging by the people pictured in the Fora banner.....wow how did I get subscribed to this elitist garbage?

Unsubscribed.

[openyourmind678]

hhahahaa, yea they have no idea that this guy is more of a fascist than Hitler. (fascism has nothing to do with the killing of jews). Listen to a few works by Lew Rockwell and you'll understand that its not SPENDING that gets you out of a depression, it's SAVING.

[Fahumsixtysix]

Oh man, that guy sure sounds credible. That's why I saw him get a nobel prize and an op-ed in the most popular newspaper in the country!

[rodolphesimon]

The "no quick fix-deal with it" arguement is an "out" for them to say "hey we did something". No quick fix could mean years. In other words, it ain't gonna do shit to stimulate anything. I know a hustle when I hear one.

[ubuibiok]

This is one of the first time that I disagree with him...90 days is more then enough time to Ear Mark 500 Billion, even I can do it .

[imstillwalking]

Tax cuts don't get bridges, levees, roads, sewers, schools & all the other large infrastructures projects done. The concept of tickle down economics is naive. The only people who believe in it are people who already have money. Those of us on the front lines of manufacturing or health care see little or nothing and in fact see benefit cuts which compound problems. Bipartisanship on the stimulus is a fraud when NO republican is/was going to vote for any of it. & who's going to pay for the war?

[openyourmind678]

So your saying that taxes do make these things better... hmmm.. well we've been paying a shit load of taxes and all those things still SUCK. maybe if we didn't have to pay so many fucking taxes, we'd have some money to put into our local communities, local taxes and programs. This way we would not feed a third of it to the federal government to bomb third world countries!

[imstillwalking]

I'm saying giving you $800 doesn't fix bridges, levees, dams, highways,sewers, give us police or firefighters. Previous wars were paid for as they went not on a credit card. So, it's ok to pass the cost of this war & all the other consequences of no taking care of our infrastructure on to our kids & grandkids? We are collapsing from within and someone has to pay for it. We can sell our roads to the Chinese, because you think you're not paying taxes is somehow going to get it done? Doubt it.

[imstillwalking]

I think you need to talk to those GREAT Republicans, Bush/Cheney and cronies about bombing third world countries. Agree, we definitely should have never gone into Iraq. That was total BS. As for Afghanistan/Pakistan, I have mixed feelings. We should look at every army that's been there and defeated. And maybe if we weren't there Muslims might have one more reason not to hate us.

[openyourmind678]

If it weren't for Paul Krugman's Economics, than we would have never have gone into Iraq. We already follow Krugman's agenda and we have been for at least two decades, why the hell should we keep on doing it.

A: he thinks war stimulates the economy.

B: he thinks that China should continuously lend us money to do whatever we want, and the only way they will do that is if oil is traded in the dollar, hence: our invasion of an oil baring region.

[TexanProgressive]

So you are saying that believing in Keynesian economics logically implies going into Iraq?

[davidmesaaz]

"he thinks war stimulates the economy."

He fell for one of the oldest economic fallacy in the world. Its the Broken Window fallacy by Frédéric Bastiat in 1850. If you windows are broken it employs people when you pay to have it fixed and therefore good for the economy. It doesn't create jobs it just redistributes them from productive to less productive enterprises. Which is exactly what the stimulus does...

[openyourmind678]

you need to re-read my comment before you tell me that im arguing for NOT putting money into our countries infrastructure. If people werent paying 1/3rd of their paychecks in taxes, then they could put money into their local governments to re-build, i'd do it, everyone in my family would do it and heck it'd get done better and faster. remember, every bridge is in a town and every town is in a state, why should the federal government take our money to fix them.

[imstillwalking]

oym678, I admit to hesitating to respond to your post aimed at me. First, I had reread your post before I commented on it in the first place. When I speak of infrastructure projects, I am referring to those that are too large for a municipality or even a state to undertake and have benefits that have larger benefits than just to that municipality or state. Dams, interstate highway systems, the electrical grid, etc. You obviously don't feel the need to contribute to them as they don't effect you.

[imstillwalking]

(con't) Whether it's freight trains or waterways remote from you, they make your life better. Clean water makes your life better. Green energy makes u & me less dependent on fossil fuels that pollute our atmosphere & contribute to global warming (I suspect you don't believe in that). I live in a small community of 4000 and have the poor to the ultrarich (>$1 billion). That divide is deeper and wider than it has ever been. I make a decent living as a medical professional, but I live in a town.

[imstillwalking]

(con't) In our community, our doctors can't afford a home here. The lower earners work two to three jobs and most do not get benefits. They work to keep a roof overhead and food on the table. You tout that you're an economics major. I don't know if that means you're some idealist still in the classroom or actually working in economics. There are few degrees that actually prepare you at anymore than Walmart or COSTCO or as a teller at the local bank.

[imstillwalking]

(con't) In my 60 years, I've seen the divide widen. The middle class disappear & it will continue. Think it was Bill Maher this week who suggested the 1% who realized 80% of the wealth over the last two administrations... it's time for them to pay up. It's time for those Wall Street execs who extracted BILLIONS of our dollars for their bailed out company to give back. It's time for credit card companies to stop with upping the interest to 23.9+% not because of "the new economic environment."

[openyourmind678]

that top 1 percent has become richer as a result of an expanded welfare program. They pay over 70% of the taxes already and the roads and infrastructure budgets are already drained by the federal government although the state sales tax would have been able to pay them over six times. I think people should be more involved with local campaigns and local communities more than they watch CNN and worship Obama and throw all their money at useless wars. P.S. the key to successful HC is competition.

[imstillwalking]

(con't) No insurance, the sicker they are. The more it will cost than if we had some form of universal health care and spread the cost. Or we could just let them pile up outside our doors and just bulldoze their bodies on Tuesdays.

Enough time spent. You aren't going to get it until you're out of a job or have your benefits cut or retire and find there's no more social security. Then it's too late. But, we'll just bulldoze your body along with the millions of others who end up the same way.Done

[Fahumsixtysix]

"Trickle down economics" is just another way of saying "Republicunt government is pissing down your leg."

Read a book, twit.

[openyourmind678]

John McCain, Bush and even Obama all follow the same system of economics you conformist pawn. Try taking at least one course in economics before you argue with an economics major.

[TexanProgressive]

Is this supposed to be an argument from authority? With all of those econ courses, you should be able to reason your way through the argument w/o sighting your credentials.

You sound like one of those people w/ extreme beliefs who thinks that everyone else is the same. Extreme Marxists think anyone else has practically the same views and comparing them is like arguing shades of grey. I predict you are on the other extreme.

[Fahumsixtysix]

Good thing I'm not arguing against an econ major, just some loser high schooler who is sipping the free market kool-aid.

[davidmesaaz]

The Republicans lost control of Congress because of deficit spending on infrastructure. The infamous bridge to nowhere bill.

Now Obama wants to continue the reckless spending habits of the Bush Administration.

More money to investment means more profits more profits more taxes. More taxes more bridges.

I think that its naive to think that raising lowering the amount of capital available through taxation has no effect on businesses.

[imstillwalking]

davidmesaaz, the reality is that it IS a combination of both. I don't think all tax breaks or all spending is the panacea the extremes see. I believe gov't has to do the vast majority of big infrastructure projects. I also believe tax breaks for small business are important, but 95% of small business makes <$250,000/year & they're supposed to be getting help in the stimulus package. The tax cut amts. to $13/wk. That's going to make a difference for someone making $60,000+? Don't think so.

[davidmesaaz]

The stimulus package and government spending supports big business and those who passed campaign contributions.

Obama on the campaign trails said he was going eliminate the capital gains tax for small businesses. there isn't any tax cuts. There are tax rebates.

The reality of it is.. if you gave bill gates 1 million dollars and a small business a million dollars. Gates would create more jobs more taxable profits and more innovation essentially more economic growth.

[gemini067]

If comrade Krugman is for the porkulus bill, then it must be really bad for America and Americans, this guy is so far left he can't even spell "right".

[projectcmd]

Blah Fucking Blah...They gave this dude a Nobel Prize, they should have given it to Peter Schiff for his dead on balls books. This freak is a fruit loop, doesn't know a stimulus from an asshole.

[Fahumsixtysix]

Well with such intelligent arguments as that, it's a wonder that McCain didn't win.

[LeGioNoFZioN]

unimpressive