Roll the Bones, on Thursday, May 3rd, 2012, 12:49 PM, said:
I thought we were all the past the "free market" will cure all ills and know it's total bunk.
Nobody said it "cures all". The claim, backed by volumes of evidence, is that government interference makes problems worse. The Depression, the 70s, the S&L crisis, the housing crisis... how much more evidence do we need before we finally, once and for all, give up on the ridiculous notion that wise central planners give better results than a millions individual small experiments?
Krugman seems to be right on the deficit spending (in my mind) as well.
And you are basing this, I guess, on the fact that we are in the worst economic downturn since the last time government spending grew by this much?
The conservative fiscal policy doesn't seem to be fairing to well in Europe as it continually declines as unemployment keeps going up.
I don't think that phrase means what you think it means.
Wouldn't we be better off spending some money to reduce unemployment and have the added bonus of starting to fix a crumbling infrastructure?
It doesn't work that way. That money comes from somewhere else. If the government spends a million dollars to create 5 jobs, that's visible and they pat themselves on the back. They ignore the fact that 10 jobs were destroyed by the redistribution of wealth to low-value uses.
It's not like we pay the debt off anyway, simply the interest. I realize that it can't rise indefinately, but cutting during a recession seems to only add to our woes.
How can we ever stop being drunk if we quit drinking in the middle of a 3-day bender?