The Economic Argument Is Over — Paul Krugman Has Won

Posted in the Minneapolis Forum

canmakeitup

Minneapolis, MN

#1 Apr 25, 2013
The Economic Argument Is Over — Paul Krugman Has Won

For the past five years, a fierce war of words and policies has been fought in America and other economically challenged countries around the world.

..........

Over the course of this debate, evidence has gradually piled up that, however well-intentioned they might be, the "Austerians" were wrong. Japan, for example, has continued to increase its debt-to-GDP ratio well beyond the supposed collapse threshold, and its interest rates have remained stubbornly low. More notably, in Europe, countries that embraced (or were forced to adopt) austerity, like the U.K. and Greece, have endured multiple recessions (and, in the case of Greece, a depression). Moreover, because smaller economies produced less tax revenue, the countries' deficits also remained strikingly high.

So the empirical evidence increasingly favored the Nobel-prize winning Paul Krugman and the other economists and politicians arguing that governments could continue to spend aggressively until economic health was restored.

And then, last week, a startling discovery obliterated one of the key premises upon which the whole austerity movement was based.

An academic paper that found that a ratio of 90%-debt-to-GDP was a threshold above which countries experienced slow or no economic growth was found to contain an arithmetic calculation error.

..........

more:
Read more: http://www.businessinsider.com/paul-krugman-i...

**********

Gandhi said,“First they ignore you, then they laugh at you, then they fight you, then you win.” But sometimes, things proceed in the opposite direction. Colbert does Reinhart-Rogoff.

http://www.colbertnation.com/the-colbert-repo...
Consistent

Grantsburg, WI

#2 Apr 25, 2013
Rocket Scientist,

That is one opinion.

I do not want to piss on your love fest for the Collectivist Idddiot Klugman.....but.

Lets try some "Common Sense" (Google the expression).

Every "Bubble" collapses.... Every Bubble?....yup, EVERY ONE!

What Iddiots like the Secular Hedionists with their Situational Ethics do is simply "Ignore" tommorow for the pleasures of today.

What the Collectivist Idddiot Klugman has advocated is to "Stimulate" with debt in order to activate the economy.....

One major problem. There is about 20 Trillion Dollars that are locked away by the Productive, and they will not "Invest" until the Redistributionist in Chief is out of office.

Two Major Problem. The creation of the Socialist State by the Redistributionist in Chief has resulted in Business, especially Fast Food and Grocery Stores, to become dependent on the Sheeple and their EBT Cards for sales, and profit.

Three Major Problem. There is no there, there. Nothing of value is aquried by distributing "Free Shaat" to any individual, or to the Demokrats Crony Corporations.

Four Major Problem. When the Welfare State collapses on its own weight, there will be no productive citizens left to step up and clean up the mess that the Demokrat Children have created.
The Chinese will call in their "Markers" and a Depression will ensue.

Thanks for Ignorant Educated Demokrats like the Collectivist Idddiot Klugman

"So the empirical evidence increasingly favored the Nobel-prize winning Paul Krugman and the other economists and politicians arguing that governments could continue to spend aggressively until economic health was restored."
Drunken Consistent

Minneapolis, MN

#3 Apr 25, 2013
Go back to your Phillip's vodka and leave the discussion to those of us with more than an elementary school education.

Time for the last of you old dinosaurs to die off from old age and expelling too much hot air.

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