Paul Krugman - How FDR Saved the World

Have you read the reviews on Krugman's new book yet? http://www.amazon.com/gp/product/B004J8HXGS/ref=as_li_ss_tl?ie=UTF8&tag=t...

Obama ran about 3% behind other democratic candidates before he was elected president, and even more in previous slave states. So it is still a problem, but is is shrinking.

The situation we are in now is quite similar to the 1930s. We had a financial collapse that was very similar to the bank collapses in the 1930s. All of the institutions that got into trouble were serving a banking function, and they were all unregulated. This is very similar at a deep level.

In the 1930s, FDR was able to come to a country that had been devastated. The conservative party at the time was discredited because of what had happened. We always knew that self interest was bad morality, but now we know that it is bad economically as well. We know that we need a change, and that is a great opportunity.

The speeches that Obama gives is great. We desperately need support to the banks because consumers don't want to spend. We desperately need to the government to fill the hole in the economy that the private sector is leaving. The worry is whether things can get going fast enough. We are losing jobs at the rate of half a million per month. This will be a very bad year ahead of us.

In the 1930s, FDR saved democracy and he saved the world. But he was too cautious in his support for the economy. Hopefully we don't make that mistake again. Most importantly, FDR created the institutions that sustained our society for decades to come, such as social security and the labor movement. For Obama, the equivalent of social security is health care. He will be judged by whether he can stabilize the economy and implement a for of universal health care. He should try to do this all at once. People can see that the policies of the past didn't work, and he needs to turn things around in the first 180 days.

No one expected the situation to be as bleak as it is. There is a real risk that the economic recovery plan will fail. However, if it does succeed, then we will see a dramatic improvement in our lives. 4 years from now, we will all wake up and realize that we are living in a much better country than we used to.

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[sov19871987]

I am Sure Paul Krugman disliked his video as well.

[migkillertwo]

"monopolies cannot sustain themselves long term..."

Natural monopolies can, and businesses can maintain monopolies if there are massive economies of scale in the industry.

[obi1nekinobi]

@migkillertwo Yes, the closer to perfect competition you can get, the better. But, the monopoly fallacy is deeply flawed... Monopolies cannot sustain themselves long term without the market taking over. Instead, monopolies NEED government policies to be sustainable. And don't be so quick to say Ron Pauls supporters don't take economic classes... I have taken several... but it is a lot easier to learn from a book then pay thousands of dollars to listen to what ur "suppost" to hear.

[migkillertwo]

...this since the days of David Ricardo and Adam Smith. The problem is that there are a few key government functions which are needed for these markets to flourish. First, government need to ensure that no side has monopoly or monopsony power, the former by forbidding collusion, regulating natural monopolies, and the latter by building infrastructure. Not doing this creates massive mis-allocations of resources and drags economic growth.

[migkillertwo]

@stebecool Not really. Most people on youtube who actually look for Paul krugman videos to listen to are just Ron Paul voters who have "discovered" the "novel" Austrian business cycle theory. People who agree with Krugman spend more time in econ classes than on youtube. Ron Paul supporters typically shy away from econ classes because, frankly, the facts taught in econ 1. do not comport with the Austrian vision for America. Free, competitive markets are great, we've known...

[stebecool]

I love how all Krugman videos on YouTube have about a 50% "like" rating no matter what. Considering that YouTube users far tend to be young and left-wing statists, that just goes to show you how full of shit he is. Even his base doesn't believe in him.

[blackshep01]

Fool! FDR made the depression worse.

[Zatzzo]

love the talk but HATE the sound!

[RunLiberty]

Ron Paul 2012

Newt Gingrich likes FDR beacuse FDR

was a borderline if not straight out fascist

[Redeye1524]

How FDR Saved the World: Or Why I love Herbert Hoover and Failed Economic Policies