"End This Depression Now"

: Paul Krugman Urges Public Spending, Not Deficit Hysteria, to Save Economy

(Multimedia) Right now, there just is not enough spending, and we need the government, which can do it, to step in and provide the demand we need. ... We’ve had austerity in the face of a recession, in a way that we have never had before since the 1930s. ... And the results are clear: it’s disastrous." Full Story »

Posted by Dwight Rousu

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Randy Morrow
4.5
by Randy Morrow - May. 18, 2012

Romney’s technique is that—since basically every word he says is a lie, including “a,” “and” and “the,” you never know where to start. But this is—the idea that the—first of all, that Obama is responsible for the large deficits is just not true. It’s overwhelmingly the result of the Bush tax cuts, unfunded wars and a terrible economic crisis that began, of course, under Bush. The idea that the deficits are what’s holding us back is all wrong. —- …by the way, the idea of Obama as somebody who governs from the left, I mean, Obama is—Obama’s positions are those of a moderate Republican circa 1992. It’s not—he’s not a leftist. What’s happening now is you have a radical-right Republic Party. —- …because of a hostile Congress. If we didn’t have that, first thing to do is a big slug of aid to state and local governments, so they can rehire those schoolteachers, get back to repairing the roads. Right there, you have—by my rough math, you have enough to get the unemployment rate down to something like six-and-a-half percent. So get it for—you know, right there, you can get us to a dramatically better economic situation. Mortgage debt relief. Federal Reserve can do more stuff. We could end this. We could be out of depression territory. —- …the idea that the problem with our economy right now is that people can’t afford to do startups. That’s not the problem. The problem with our economy right now is that there’s not enough demand from consumers, from the government, to make it worth expanding. —- The things that really get me are that we have almost four million people who have been out of work for more than a year. That’s completely—you have to go back to the 1930s to find anything like that. That’s destroy—that destroys lives. That destroys families. That destroys people’s long-run prospects for ever getting back to work. —-

Dr. krugman weighs in on a number of related topics and tells how we could get out of the depression (if not for republicorp).

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